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2018 (10) TMI 1995 - AT - Income TaxGain on land sold - nature of land sold - Capital asset u/s 2(14) - Whether the land is situated within Municipal Limit or not? - urban or rural land - AO held that since the land sold by the assessee falls within one kilometer on left hand side of Mohali – Kharar Road (National Highway -21), the sale consideration received on its transfer is chargeable to capital gains - HELD THAT:- The Sub-Registrar vide report No. 6 dt. 03/01/2014 and No. 50 dt. 22/01/2014 has intimated that the land sold by Smt. Tej Kaur is Rural land and outside the Municipal limit of Kharar and Mohali. Its distance from National Highway No. 21 is above 1 K.M.(4427 ft. 804 Karam). Accordingly, the land of the assessee is out of urban area. Thus after making due enquiries the ITO has accepted the returned income in the case of one of the applicants namely Smt. Tej Kaur in the earlier year, hence, it can be said that the Revenue, having accepted the distance after due enquiries bringing the proceeds of the sale of remaining part of the land to taxation cannot be accepted. Not only that, the certificate from the Tehsildar, Mohali again reiterated the fact that the land in question is beyond the distance of 1 Km from the National Highway. Certificates of the Land Revenue Authorities, and orders of the Department in the case of the one of the assessee for the earlier years, we hereby direct that the addition made be deleted. Appeals of the Assessee are allowed.
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