Assessee having received the sale proceeds in a staggered manner over the years, from 2012 to 2016, and accordingly reinvested the capital gains in a residential property and agricultural land as and when funds were available, exemption under ss. 54B and 54F cannot be denied solely on the ground of non-adherence to strict time-limits; the assessee is entitled to claim proportionate exemption under ss. 54B and 54F for the investments made within the statutory time limits. Ownership of land in the assessee’s name is a mandatory condition and, therefore, the assessee cannot claim exemption under s. 54B for the land purchased in the name of his brother. (AY. 2015-16)
Jobanji Thakor v. ITO (2025) 234 TTJ 774 / 175 taxmann.com 62 (Ahd)(Trib)
S. 54B: Capital gains-Land used for agricultural purposes-Investments made beyond the statutory time-limit-Received the sale proceeds in a staggered manner over the years, from 2012 to 2016, Reinvested the capital gains in a residential property and agricultural land as and when funds were available-Exemption under ss. 54B and 54F cannot be denied solely on the ground of non-adherence to strict time-limits-Assessee is entitled to claim deduction in respect of investments made beyond the prescribed time period-AO is directed to recompute the assessee’s taxable capital gains by allowing proportionate exemption under ss. 54B and 54F for the investments made within the statutory time limits. Ownership of land in the assessee’s name is a mandatory condition and, therefore, assessee cannot claim exemption under S. 54B for the land purchased in the name of his brother. [S. 45, 54F]
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