New Delhi, Oct. 4 -- A Panchkula-based man sold his family's ancestral agricultural land for Rs.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 Rs.7.73 crore in his income tax return (ITR) after deducting some expenses. He also claimed tax exemptions of Rs.2.64 crore under Section 54F and Rs.3.73 crore under Section 54B, amounting to a total exemption claim of approximately Rs.6.36 crore.

However, the income tax assessing officer (AO) found the supporting documents insufficient and disallowed bo...