Agricultural Land Cultivated Only For A Few Days: ITAT Allows Exemption
2 years, 3 months ago

Agricultural Land Cultivated Only For A Few Days: ITAT Allows Exemption

Live Law  

The Pune Bench of the Income Tax Appellate Tribunal has allowed the income tax exemption under Section 54B even when the land was cultivated only for a few days during the relevant years.The two-member bench of S.S. Vishwanethra Ravi and Inturi Rama Rao has observed that part of the land could not be used for agricultural purposes but grass was. The Pune Bench of the Income Tax Appellate Tribunal has allowed the income tax exemption under Section 54B even when the land was cultivated only for a few days during the relevant years. The conditions prescribed to claim the benefit of exemption under the provisions of section 54B are that the agricultural land be sold as a capital asset and used by the assessee during the period of two years immediately preceding the date of transfer for agricultural purposes. The AO had denied the exemption under section 54B on the grounds that the agricultural land sold was not used for agricultural purposes for two years preceding the date of sale as it was held only for a period of 22 months and some parts of the land were used for growing grass.

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