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2018 (6) TMI 278 - ITAT HYDERABADEscapement of income requiring reopening of the assessment u/s 148 - Nature of land sold - STCG - Held that:- In the computation of income, the assessee has taken the net figure after reducing the interest on loans and development charges and therefore, the assessee has actually taken the sale consideration at ₹ 44,12,500 only and there was no escapement of income in computation of the STCG. Therefore, there is no escapement of income requiring re-assessment u/s 147. In the revised return filed in response to section 148 has claimed the land as agricultural land. AO has also accepted that as per the revenue records, these lands are agricultural lands but the only reason for not accepting the said contention is that the assessee has not carried on any agricultural operations. In the case of CIT vs. Smt. Debbie Alemao and 2.Joaquim Alemao, (2010 (9) TMI 560 - BOMBAY HIGH COURT) has held that where the land is shown in revenue record as agricultural land and no permission was taken for conversion of land, it is immaterial whether any agricultural income is shown in the return or not, the gains from sale are exempt from taxation. The reason given by the AO for not accepting the assessee’s contention is not sustainable. - Decided in favour of assessee.
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