Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 454 - AT - Income TaxTreating the agricultural land as capital asset - Held that:- It is observed that no such ground was taken before the First Appellate Authority as is evident from Form No. 35. However, this being a legal ground and goes to the very root of the taxability of the capital gain, we deem it proper that the same be admitted for adjudication. Accordingly, the same is admitted. The contention of the assessee is that the agricultural land falls beyond the specified limit from the Municipal limit, hence could not be amenable to capital gains tax. We find that both the authorities below have accepted the fact that the land being transferred was an agricultural land. However, neither of them has given a clear finding as to how the transfer of agricultural land would be transfer of capital asset and is outside the exemption clause of section 2(14) of the Act. Since this issue goes to the very root of the taxability of capital gains, therefore, we hereby set aside the impugned order of ld. CIT (A) and restore the issue to the file of the AO to decide it afresh in the interest of justice. The AO would verify the distance of agricultural land from the limit of Municipality. In the event, he finds that the transfer of agricultural land sweep within the definition of Capital Asset, he would compute the capital gain on such transfer as per law after giving the deductions as available to the assessee under the Act. - Decided in favour of assessee for statistical purposes.
|