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2011 (8) TMI 512 - AT - Income TaxSale of agricultural land - Capital asset u/s 2(14)- long term capital gain - held that:- there is no dispute that the newly created GVMC is a municipality and the impugned lands sold by the assessee are situated within the limits of GVMC. Accordingly, without prejudice to the contentions of the revenue that the impugned lands are not agricultural lands, the said lands would fall in the category of "Capital assets" within the meaning of clause (a) of section 2(14)(iii) of the Act, if they are held to be an agricultural land. - the contention of the assessee that the impugned lands are agricultural lands has not been accepted by the department. - the claim of the assessee has not been examined by the Assessing Officer, in the absence of required details. - matter restored to AO for fresh decision Exemption u/s 54B - Agriculture land - vacant land - held that:- if the Assessing Officer comes to the conclusion that the impugned lands are agricultural lands, still the capital gain arising on their sale is assessable under the head "Capital gains" for the reason that the impugned lands are located within the limits of municipality, viz., GVMC. However, the assessee would be entitled for exemption under section 54B of the Act on the reinvestment made by him in purchase of another agricultural land. - AO directed to verify the claim of the assessee. Provisions of section 50C - for computing short term capital gains - held that:- The Learned CIT(A) has specifically noticed that the assessee did not object before Assessing Officer for adopting the sales value determined for stamp duty purposes for computing the short term capital gain as per the provisions of section 50C of the Act. Hence there was no necessity for the Assessing Officer to make a reference to the valuation officer. Before us, no material was placed to show that the assessee did object before the Assessing Officer for applying the provisions of section 50C. Hence, we do not find any infirmity in the decision of Learned CIT(A) on this issue.
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