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2015 (1) TMI 55 - AT - Income TaxTaxability of sale proceeds - Sale of agricultural land exempted u/s 2(14)(iii) or not – Held that:- As decided in assessee’s own case for the earlier assessment year, it has been held that the AO could not make out any case to treat the lands as non-agricultural lands so as to tax the profits on their sale under the head short term capital gains - since the evidence produced by the assessee clearly shows that the property is an agricultural property – and decision relied upon by assessee cannot be relied upon as the land was situated within municipal limits registered as urban land, bearing municipal door No. and subject to urban land tax sold on yardage basis surrounded on all sides by industrial and commercial buildings on which the assessee itself constructed two buildings after its purchase, part of such land lying vacant cannot be agricultural land for the mere reason that it was subject to agricultural operation, and hence its sale gave rise to capital gains – since gain on sale of agricultural lands are exempt from Capital gains, CIT(A) was not justified in bringing into tax gain on sale of agricultural lands as business income – Decided in favour of assessee. Claim of deduction u/s 80IB(11A) - Information/evidence furnished at the time of finalization of assessment or not – Held that:- In assessee’s own case for the earlier assessment year, it has been held that the assessee has fulfilled all the conditions, therefore, entitled for deduction u/s 80IB(11A) – thus, the order of the CIT(A) is upheld - Decided against revenue. STCG and LTCG disallowed - Information/evidence furnished or not – Held that:- CIT(A) rightly noticed that in the remand report, the AO has accepted the interest income at ₹ 83,721/- as shown by the assessee - Thus, the addition made on estimate basis of at ₹ 1,00,000/- is deleted - Regarding the short term capital gains shown at ₹ 2,06,826/- which was estimated by the A.O. at ₹ 2,50,000/- is again accepted by the AO in the remand report and the sale of land at ₹ 1,47,441/- which was estimated at ₹ 1,50,000/- the AO has accepted the figure in the remand report, therefore, the addition made at ₹ 4,00,000/- on account of short term capital gains and ₹ 1,00,000/- income from other sources is deleted – thus, the order of the CIT(A) is upheld – Decided against revenue. Most of the additions made by A.O. were accepted to be wrong and Ld. CIT(A) deleted the same. In the bargain returned income by assessee was not brought to tax. Therefore, we direct the A.O. to accept the income returned. To that extent, Revenue appeal is partly allowed. Cost of ₹ 1000 levied on ACIT-1, Warangal for coming in appeal on issues which are already accepted by him in the remand report - This amount should be recovered from the salary of the Officer concerned and to be remitted to the Government account.
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