By Accommodation Times Bureau
Clause-b of sub section (1) of section 54G does not use its specific phrase ‘for the purpose of its business of under taking’ except that the business should be in non-urban area. Therefore, it can be interpreted that assessee should carry on any business in non urban area. If the amounts are utilized for acquisition of assets for the purpose of its business, this should qualify for the purpose of exemption under section 54G as there is no requirement that the land and building should be used for the purpose of the business of industrial undertaking.
INCOME TAX APPELLATE TRIBUNAL, MUMBAI
ITA No.4428/Mum/2008 – (Assessment year: 2004-05)
Dy. Commissioner of Income Tax
Enpro Finance Ltd
Date of Pronouncement: 27/06/2012