Man sells agricultural land for ₹8 cr, claims tax relief after reinvesting proceeds; gets notice; ITAT rules in favour
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Sushil Tiwari sold ancestral agricultural land for ₹8 crore on September 18, 2017, and claimed tax relief.
- ✓The tax department initially disallowed his exemptions, but the ITAT ruled in his favour on September 1, 2026.
- ✓The tribunal confirmed his property use was commercial and his new land purchases were valid.
Story at a Glance
- Category
- BUSINESS
- Reported By
- mint
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
A taxpayer who sold his ancestral land for ₹8 crore, faced tax issues when his claimed exemptions under Sections 54B and 54F were disallowed. Here's why he ultimately won the case.
A Panchkula-based man sold his family's ancestral agricultural land for ₹8 crore on September 18, 2017, and claimed long-term capital gains tax exemption under Section 54B and Section 54F. He claimed the relief after reinvesting part of the sale proceeds in two properties in Chhat and Sanoli villages in Punjab.
The case concerns Sushil Tiwari, who reported LTCG of ₹7.73 crore in his income tax return (ITR) after deducting some expenses. He also claimed tax exemptions of ₹2.64 crore under Section 54F and ₹3.73 crore under Section 54B, amounting to a total exemption claim of approximately ₹6.36 crore.
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