Assessee purchased lands at Dhanelli and claimed deduction u/s 54B. According to AO above lands has been purchased either on or before the date of transfer of land at Sejbahar and hence deduction u/s 54B was not allowable. Assessee explained that the possession of the land was handed over to the buyer and the consideration received was utilized for purchasing new land. CIT(A) allowed the exemption. On appeal Tribunal affirmed the order of the CIT(A). As regards the loan transactions the matter is remanded to the Assessing Officer . ( AY. 2015-16)
ITO v. Rekhchand Jain (2024) 204 ITD 333 ( Raipur)( Trib)
S.54B: Capital gains – Land used for agricultural purposes –Investment in new agricultural land – Loan was repaid after sale consideration was received – Order of CIT(A) deleting the addition is affirmed – Cash credits – Matter remanded to the Assessing Officer . [ S. 45 ]