Exemption u/s 54b

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anant (Querist)
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25 December 2013 Respected Sir,

Recently I read an article on exemption u/s 54B of IT Act wherein the case of CIT v. Gurnam Singh 327 ITR 278 has been discussed .In the same context I have a question/query.
If an assesse sells his urban agricultural land and transfers the sales proceeds therof to the bank a/c of his wife ,in other words gifts that money to his wife and thereafter a rural agricultural land is purchased by utilizing that money/fund in the name of his wife, will the assesse get exemption u/s 54B of the IT Act?
My second question is if the assesse has been selling the fruits of his mango orchard in advance ( before the beginning of each season) in cash to other person who pays 90% cash(in advance) and 10% fruits to the assesse and thereafter gets the rights to look after the orchard for the whole year and sell the fruits at the ripening of the fruits and appropriate the sales proceeds thereof can it be said that the assesse has been putting the land to agricultural use in terms of section 54b?

I shall very much appreciate if my queries are answered.

CA VISHNU GAVKARE

CA VISHNU GAVKARE (Expert)
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28 December 2013 answer of second question is yes. it is an agriculture income. for 1st question according to my view it will not be eligible for exemption.