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2014 (9) TMI 124 - AT - Income TaxLTCG on sale of agricultural land – Land constitute capital asset as defined u/s. 2(14) or not - Held that:- The CIT(A) was of the opinion that the report cannot be given credence since the factual position reported pertains to the year 2013 and not before 5 years i.e., 2006 which is the year in which the assessee sold the land - CIT(A) observed that the AO did not given any opportunity to the assessee to rebut the contents of the report and cross examine the authorities who has received the report – relying upon CIT vs. Sashiben [2006 (7) TMI 105 - GUJARAT HIGH COURT] - the fact of non-agricultural use by the buyer will not alter the character of land in the case of seller. Determination of sale consideration – Held that:- The lands sold by the assessee are agricultural lands and the assessee satisfied most of the tests which are laid down in Sarifabibi Mohmed Ibrahim And Others Versus Commissioner of Income-Tax [1993 (9) TMI 10 - SUPREME Court] - the CIT(A) has observed that the AO had not given opportunity to the assessee to rebut the contents of the report called for from the MRO, Ghatkesar Mandal on 28.1.2013 - no opportunity of cross examination of the authorities who had issued the report was given to the assessee - CIT(A) was constrained in giving a direction to the AO inasmuch as many years have lapsed from the time the transaction taken place which was in the year 2006-07 and also the case was heard by the CIT(A) which was on 4.10.2013 - giving the benefit of doubt to the assessee, the MRO, Ghatkesar had given a report evidencing the correct status of the land wherein he has mentioned that agriculture operations were being carried on the land - the lands sold by the assessee are agricultural lands, and the CIT(A) has rightly allowed the assessee's appeal – Decided against Revenue.
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