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2016 (1) TMI 492 - AT - Income TaxCapital gains - measurement of distance of land from the end of the municipal limits - agriculture land - Held that:- As the capital gains worked out on transfer of lands was held justified as these lands, being non-agricultural lands, are capital assets in accordance with section 2(14) of the Act and second, that the Assessing Officer, in his remand report, rightly stated that Gunnor Town and Village Panchi Gujran have common boundary and distance measured for other lands (other than lands in question) from the office of the Tehsildar by vehicle was more than 6 kms. With these observations, the CIT(A) directed the Assessing Officer to measure the shortest possible distance of lands, other than mentioned in para 4 of the CIT(A) order, the CIT(A) in principle decided that the order of the Assessing Officer will remain upheld if the distance from municipal limit to lands is upto 2.00 kms, otherwise the same would not hold the field. The CIT(A) after laying dicta in principle, restored the issue to the file of the Assessing Officer for limited purposes of factual verification and we are unable to see any perversity or any other valid reason to interfere with the same. Before we part with the discussion on this issue, it is relevant to mention that the Assessing Officer will also take into consideration the binding Circular no. 17/2015 dated 6.10.2015 of the CBDT (supra) while verifying the facts and while applying the law in pursuance to the order of the first appellate authority. Accordingly, we uphold the conclusion of the CIT(A) with the direction to the Assessing Officer, as set out above. - Decided against revenue. Rejection of book results u/s 145(3) - Held that:- CIT(A) reduced the addition without pointing out any mistake in the calculation of the Assessing Officer and without recording any findings regarding conclusion of the Assessing Officer which is an incorrect approach for a first appellate authority. We, therefore, are of the opinion that this issue requires afresh adjudication at the end of the CIT(A) and hence, we restore this ground to the file of the CIT(A) for re-adjudication on this sole issue. Needless to say that the CIT(A) shall provide due opportunity of hearing to the assessee and shall decide the issue without being prejudiced from his earlier order and our observations in this order. Accordingly, ground of the revenue is deemed to be allowed for statistical purposes.
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