Dismissing the appeal of the assessee the Court held that ; the assessee had not used land for agricultural purposes for a minimum period of two years before its sale. Moreover, from expenses incurred, it could be proved that said land was never used for agricultural purposes after it was purchased by assessee as assessee was concentrating on its improvement rather than cultivation . As the assessee had not used this property for agricultural purposes accordingly the assessee was not entitled to benefit of deduction under S.- 54B ( BP.2005-06 to 2009-10 )
Gopal S. Pandit. v. CIT (2018) 408 ITR 346/ 257 Taxman 50 / 172 DTR 23/( 2019) 307 CTR 112(Karn) (HC)
S. 54B : Capital gains – Land used for agricultural purposes -Sale deed for purchase and sale of land, found that assessee sold this land within two years from date of its purchase and not used land for agricultural purposes for a minimum period of two years before its sale -Not entitle exemption- Moreover, from expenses incurred, it could be proved that said land was never used for agricultural purposes after it was purchased by assessee as assessee was concentrating on its improvement rather than cultivation. [ S.45 ]