AO completed assessment and accepted income declared as per return of income. On revision CIT held that exemption allowed u/s. 54B on sale of agricultural land was not allowable as land was a non-agricultural land before the date of transfer. Accordingly the order was set aside. On appeal the Tribunal held that the Assessee has not declared any worthwhile agricultural income in earlier years from such large track of land. Assessee had failed to adduce any satisfactory evidence that land was subjected to any systematic agricultural operation in last two years immediately preceding date of transfer as required in law indeed. AO has failed to make any inquiry on this vital aspect while admitting claim and allowed claim summarily. Accordingly the order of CIT is affirmed. While giving effect to the order of the CIT, the AO also disallowed the brokerage, which was affirmed by the CIT (A) on appeal the Tribunal held that, The AO was in error in making disallowance of Rs.3,12,500/-towards brokerage in the second round of proceedings. The AO has clearly travel led beyond the scope of inquiry under s. 263 of the Act guided to him by the PCIT. The action of the CIT(A) confirming the addition is therefore set aside and the AO is directed to delete the disallowance of brokerage amounting to Rs.3,12,500/-. (AY. 2008-09)