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2020 (9) TMI 412 - AT - Income TaxRevision u/s 263 - assessee’s claim of deduction u/s 54B - Section 50C applicability with regard to computation of capital gain earned on sale of agricultural land - HELD THAT:- During the course of scrutiny assessment, the A.O. examined capital gain earned by him. However, he declined the assessee’s claim of deduction u/s 54B of the Act which was appealed by the assessee before the ld. CIT(A) and which is still pending before him. CIT, Administration invoked his power U/s 263 and held that the A.O. had not made any proper enquiry and had not applied provisions of Section 50C with regard to computation of capital gain earned on sale of agricultural land. From the record, we found that the assessee had sold the agriculture land and at the time of sales of land, the statute of the same was agriculture. However, in the sale deed which was executed on 05/12/2014 it has been clearly mentioned that the nature of land is agriculture land. Further from the copy of Jamabandi of agriculture land as placed on record, this fact is also clear that the land use was got converted by the buyer of the land only after sale deed got registered by the assessee. Therefore, at the point of sale, the status of land was agriculture land. Whether the sale of agriculture land attracts provisions of Section 50C ? - We observe that the land held by the assessee was agricultural land which is not capital asset as clearly defined U/s 2(14) of the Act, which excludes agricultural land out of definition of capital asset. It is also not in dispute that the assessee had sold the agricultural land at a consideration which was more than DLC. However, as per Rajasthan Government notification since the sale was to a firm or company, the DLC rate was to be taken at 1.5 times. We found that in the case of joint owner of this agricultural land namely Shri O.P. Agarwal, the Tribunal have decided similar issue 2020 (8) TMI 150 - ITAT JAIPUR wherein it was held that the assessee had declared sale consideration more than DLC, accordingly, there is no justification for making any addition U/s 50C - No merit in the order passed by the ld. CIT(A) U/s 263 of the Act. - Decided in favour of assessee.
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