Section 54D

Exemption under section 54D of the Act is available subject to fulfillment of following conditions:

1. The land or building is treated as capital asset by the seller

2. Such land or building should form part of an industrial undertaking belonging to the seller

3. Two years immediately preceding the date on which the transfer took place was used by the seller for the purpose of business of the said industrial undertaking

4. Seller (i.e. assessee) purchases any other land or building or constructed any other building within a period of 3 years after the sale date 

5. Such purchase of land / building or construction of building should be for the purposes of shifting or re-establishing the said undertaking or setting up another industrial undertaking.

In your case, if the above mentioned conditions are satisfied, Company can claim the exemption. Please note that if the capital gain amount is not utilised for the purpose of purchase or construction of new asset before the due date of filing income-tax return, the same should be deposited into the Capital Gains Accounts Scheme.