Lands Re-Purchased Not To Be Mandatorily Agricultural On The Date Of Re-Investment: ITAT Allows Capital Gain Exemption
Live LawThe Pune Bench of theIncome Tax Appellate Tribunal, consisting of Satbeer Singh Godara and Dipak P. Ripote, has ruled that the legislature has nowhere incorporated that for claiming the deduction under section 54B of the Income Tax Act, the lands re-purchased have to be agricultural on the date of re-investment. The ITAT noted that the reinvestment clause in section 54B of the Income Tax Act says that "the assessee has, within a period of two years after that date, purchased any other land for being used for agricultural purposes". The legislature has nowhere incorporated that the lands re-purchased in section 54B deduction claim have to be agricultural on the date of re-investment as is sought to be projected at the Revenue's behest. The ITAT held that both the lower authorities had erred in law and on facts in disallowing the assessee's section 54B deduction claim.