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2015 (3) TMI 565 - AT - Income TaxRevision u/s 263 - unaccounted income from agricultural land - Held that:- In this case the AO issued notice to the assessee under section 143(3) on 6.8.2009 and notice under section 142(1) notice on 27/7/2010. The assessee participated in the assessment proceedings. To various enquiries of the AO the assessee furnished information to the satisfaction of the AO specifically vide assessee’s counsel dated 27/7/2010. The assessee furnished full details of income derived at ₹ 53,23,339/- from agricultural land located at Mondvane Village and it was stated to the AO that the said amount of ₹ 53,23,339/- received as compensation on acquisition of rights of use from the owner of the land was exempt in view of agricultural land under section 10(1) read with section 2(1A) and section 2(14) of the I.T. Act. After considering the reply of the assessee and material brought on record the AO came to the conclusion that the impugned receipt is not taxable and treated as exempt from tax. For this view of the AO, CIT cannot find fault and he cannot impose his view on AO when the AO has taken one possible view. More so, when a transfer of land in similar area was considered, by Co-ordinate Bench of this Tribunal in the case of ITO vs. Amrutilal B. Shah [2013 (12) TMI 1102 - ITAT MUMBAI] wherein held that the definition of capital asset provided in section 2(14)(iii) is not met. There is no notification issued by the Central Government in this regard calling the same being a capital asset. Under these circumstances, the land in question is rightly held by the assessee as agricultural land. It is borne out from the records of the Revenue Department that the lands in question are described by the District Collector, Jamnagar as agricultural lands as evident from the extraction given above. As such, there is no incriminating material in the possession of the Assessing Officer to hold that the land in question is capital asset within the meaning of section 2(14) of the Act. Regarding the onus related issues, we find that the same keep changing depending on the information furnished by the assessee and also gathered by the Revenue from time to time. Thus we annul the order passed by ld. CIT u/s. 263 - Decided in favor of assessee.
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