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2012 (10) TMI 567 - AT - Income TaxExempted capital gains on sale of land - assessee contested against not admitting copy of Agreement to Sale dated 10.05.1998 as additional evidence under Rule 46A - Held that:- As the agreement to sale dated 10.5.1998 goes to the root of the issue and for the substantial interest of justice, the CIT(A) should have accepted the same. Thus the additional evidence should not be refused to be admitted on technicalities. As going through the Sale arrangement the assessee has not shown the purchase of agricultural land in its books of account as an investment. Therefore, there is no reason to accept the contention that he has acquired agricultural land as an investment, profit arising out of which should not be liable to be taxed as business profit or capital gain, when the assessee has grossly failed to show that this agriculture land was situated outside the municipal limit so as to come under the purview of Section 2(14)(iii). As this land never transferred in favour of assessee and it was standing only in the name of Kanha Grih Nirman Sahkari Samiti, who was actually seller of land during the year under consideration. Even in the sale deed alleged to be executed during the year, the assessee was not shown as a seller of the property but merely as consenter to the transaction of sale - thus treating the gain arising out of sale transaction as business income is warranted - against assessee.
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