Assessee sold and transferred land to a real estate developer and claimed exemption under S. 54B of the Act.  Lower authorities held that the said land was not used for agricultural purposes during preceding two years before date of transfer of land. Hence not entitle to exemption. It was contended before the Tribunal that it had undertaken agricultural activities for two years on sharing basis through a person on crop sharing (batai) basis . However, said ‘bataidar’ could not even give correct location where land was situated .There was contradiction in statement made by so called bataidar and assessee.  Based on spot inquiry report of Inspector of income-tax, Tribunal denied exemption. Order od Tribunal is affirmed by the High Court.