Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (5) TMI 1191 - AT - Income TaxExemption u/s 2(14) in respect of agriculture property transferred - any proof of conversion of agricultural land to non agricultural land - HELD THAT:- This property is the garden land and cultivable area and when it is cultivable area it is an agricultural land therefore, we are of the view that CIT(A) is justified in holding that the disputed property is agricultural land and it is liable to be exemption under section 2(14) of the Income tax Act on capital gain. We find that the assessee has sold agricultural land and this agricultural land is situated in village Panchayat and the same was not coming within 8 kms from notified Municipality. The form No. I & XIV shows that the land in question is agricultural land. The agricultural operation were carried in the property till the date it was sold and the several fruits bearing trees were existed in the said agricultural land for a number of years, thus, it is a garden land. Therefore, we are of the view that it is not liable to be a capital gain. We find that the CIT has relied upon the decision of Bombay High Court in the case of CIT vs. Debbie Alemao [2010 (9) TMI 560 - BOMBAY HIGH COURT] wherein as held that when land is shown by the Govt. as agricultural land and that land is never used as non agricultural land till it was sold. The assessee is not liable for capital gain. The Hon’ble High Court has further held that the land has to be treated as agricultural land even though no such agricultural income is shown by the assessee as the assessee stated that the agricultural income received on sale of coconuts grown on the land was just enough to maintain the land and there was no surplus CIT(A) is justified in his action and our interference is not required. We also find from the decision of Karnataka High Court in the case of CIT & Anr. vs. Smt. K. Leelavathy [2012 (3) TMI 151 - KARNATAKA HIGH COURT] wherein High Court has held that the land sold by the assessee retained its agricultural character till the date of the order permitting non agricultural use and could be treated as capital asset only thereafter. In the instant case there is no evidence on the record that this property in use is converted from agricultural land to non agricultural land moreover the Assessing Officer has not brought out any evidence before us. We find that the assessee was holding this land almost 20 years and the assessee was holding as owner of the property as agricultural land. Therefore, in our opinion, the CIT is justified and our interference is not required. Therefore, we are in complete agreement with the finding of the CIT(A). In the result, department’s appeal is dismissed on this ground.
|