03 December 2010
One of my client was having agricultural vacant land i.e. no agriculture activity conducted on the land since last 3-4 years. He sold that land and purchased another agricultural land for taking exemption u/s 54B. On scrutiny the ITO called the information from the patwari and came to know that there was no agricultural activity and therefore denied the exemption claimed u/s 54B. Is there any caselaw in favour of assessee to claim the said exemption u/s 54B.
04 December 2010
Assesing officer is right... to get Exemption under Section 54B, the land must be used for agriculture for 2 years immediately prior to the transfer.
CAclubindia
