No deduction U/S 54B if no agricultural activity in 2 yrs preceding the sale of land: ITAT
Sunil Kisanrao Bagul (ITA No.704/PUN/2022)
Facts:
- The assessee had sold agricultural land at Nashik and then purchased 3 plots of agricultural land to claim deduction U/S 54B of the Income Tax Act.
- As per the provisions of section 54B, in order to claim deduction U/S 54B, the land should have been used for agricultural purposes either by the assessee or his family in preceding two years of sale.
- The 7/12 extract of the land (Land records) indicates that the land is marked as पडत. This means it was not used for agricultural purposes in the F.Y. 2011-12, 2012-13 and 2013-14.
- The AO did not allow deduction U/S 54B to the assessee.
ITAT Pune held as below:
- The assessee has not filed any evidence to prove that the land was used for agricultural purposes in preceding two years. Therefore, assessee has violated condition mentioned in section 54B.
- The assessee has relied on certain receipts issued by Nashik Agricultural Marketing Committee to claim that he carried out agricultural activity. However, mere sale of Tomato, vegetables to Nashik Agricultural Marketing Committee does not establish that assessee had carried agricultural activity.
- Deduction U/S 54B cannot be allowed. The appeal of the assessee is dismissed.
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