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| The Tax Publishers2019 TaxPub(DT) 5509 (Bang-Trib) INCOME TAX ACT, 1961
Section 54B
The assessee had complied with conditions for grant of deduction under sections 54B inasmuch as he has utilised, within a period of two years from the date of transfer of capital asset, the capital gain in purchasing another land for being used for agricultural purposes, therefore, mere fact that assessee did not get legal title to the land could not be ground to deny benefit of deduction under sections 54B.
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Capital gains - Deduction under section 54B - Allowability - Assessee not having got legal title to land due to pending litigation
Assessee invested a sum of Rs. 4 crores by paying advance for purchase of agricultural lands and accordingly claimed deduction under sections 54B. AO denied deduction on the ground that due to pending litigation. Assessee did not get legal title to the land. Held: The assessee had complied with conditions for grant of deduction under sections 54B inasmuch as he has utilised, within a period of two years from the date of transfer of capital asset, the capital gain in purchasing another land for being used for agricultural purposes, therefore, mere fact that assessee did not get legal title to the land could not be ground to deny benefit of deduction under sections 54B.
Supported: CIT-II v. Kuldeep Singh in [ITA No. 117/2014, dt. 12-8-2014] : 2014 TaxPub(DT) 3685 (Del-HC) and CIT v. Sambandam Udaykumar (2012) 345 ITR 389 (Karn-HC) : 2012 TaxPub(DT) 1804 (Karn-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
IN THE ITAT, BANGALORE BENCH
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