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2015 (2) TMI 939 - AT - Income TaxCapital gain determination - compulsory acquisition - in lieu of the acquisition of land, certain area of residential and commercial plots allotted to assessee - assessee has sold converted plots in the same financial year just after taking the possession and allotment of the said land - agriculture land or not - As per assessee’s submission, the land was agricultural land and was purchased on 21/04/2005, which was acquired by the JDA and in lieu of it, residential and commercial plots were allotted on 22/05/2008, thus period of holding was more than three years. - whether date of transfer of immovable property in the case of compulsory acquisition will be the date when final award was given to the assessee and not the date when the assessee extinguished her rights in the property by accepting terms of acquisition and made unconditional surrender of her rights in the land in pursuance of notification for acquisition of land? Held that:- For determining whether the assessee was using the agricultural land for agriculture purposes during the period of two years immediately preceding the date of transfer, the date of transfer is material effect. When the assessee relinquished their rights in land on 30/5/2006, the assessee has not completed two years and has not used the agricultural land for agriculture purposes. It is a fact that the compulsory acquisition proceedings were completed on 29/12/2007 and when award was passed by the Land Acquisition Officer U/s 12(2) of the Act. The assessee was allotted residential and commercial plot on 21/8/2008 at village Khatwada, Tehsil- Sanganer, district- Jaipur. The assessee received the compensation on 21/8/2008. The learned Assessing Officer has adopted the reserve rate fixed for residential plot @ 2800 per sq. mt and ₹ 5600 per sq.mt for commercial plot on the basis of reserve rate fixed by the JDA for villages Jhai, Khatwada, Bagru, Khurd, Palri and Bhambhoria. The residential and commercial plots allotted to the appellant in the area of Khatwara. Therefore, the Assessing Officer concluded short term capital gain on the basis of reserve rate is justified. The learned CIT(A) was not justified by holding that agricultural land was not a capital asset on the basis of certificate issued by the Tehsildar, Tehsil- Sanganer, that land was situated in village Khatwada, which was beyond 8 K.M. from the municipal limit. - Decided in favour of revenue.
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