The Assessee contended that the investment in new agricultural land, even though made in his son’s name and before the registration of the sale deed, should qualify for exemption under section 54B.  While the revenue contended that the exemption under section 54B should not be allowed because the new land was purchased in the name of the assessee’s son and not in his own name. And that the investment in new land was made before the registration of the sale deed, which does not comply with section 54B requirements.

The Hon’ble Tribunal held that the exemption under section 54B the Hon’ble Tribunal ruled in favor of the assessee, stating that the investment in new agricultural land qualifies for exemption under section 54B even if it is registered in the name of his son, if it was made from the sale proceeds of the old land.  The Hon’ble Tribunal also held that the investment made by assessee in new land from sale proceeds of old land, even if made before registration of sale-deed, was eligible for exemption under section 54B.  (AY 2011-12)