Man sells ancestral land for Rs 8 cr, claims LTCG; tax dept rejects & adds Rs 6.36 cr
In the tax return that he filed, the man declared LTCG of Rs 7.73 crore after accounting for certain expenses. He claimed tax exemptions of Rs 2.64 crore under Section 54F, which relates to residential property, and Section 54B, applicable to agricultural property. However, the Assessing Officer (AO) was not satisfied with the documents that were submitted by the taxpayer to support his claims
In 2017, a man from Panchkula sold his ancestral agricultural land for Rs 8 crore and proceeded to purchase two properties for LTCG tax relief under Sections 54B and 54F. However, the tax department rejected his exemptions, resulting in Rs 6.36 crore of additional tax. The man appealed to the ITAT Chandigarh, who ruled in his favor on September 1, 2026, allowing him to claim exemptions under both sections.
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