ITAT Denies Tax Exemption for Farmland in Wife's Name: A Costly Mistake for Farmers

• The Income Tax Appellate Tribunal (ITAT), Delhi, denied tax exemption under Section 54B to Adel Saini for buying new agricultural land in his wife's name.
• Section 54B allows tax relief on the sale of urban agricultural land if profits are reinvested in another agricultural land, but strictly requires the new land to be in the seller's name.
• Adel Saini sold his share of agricultural land for Rs 55.55 lakh and claimed reinvestment, but his claim was rejected by tax authorities and upheld by ITAT due to the purchase being in his wife's name.
• Legal experts emphasize that the exemption is strictly personal; purchasing property in a spouse's or relative's name, even with one's own funds, disqualifies the benefit.
• Taxpayers must ensure new agricultural land is purchased solely in their own name and adhere to deadlines or use the Capital Gains Account Scheme (CGAS) to claim exemption.