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2022 (2) TMI 982 - AT - Income TaxRevision u/s 263 - allowability of claim of assessee that the property sold was an agricultural land - HELD THAT:- Assessee purchased the agricultural land in question on 31.03.2014 for ₹ 34 Lakhs and shown himself as farmer as per the Revenue’s Laws in Gujarat stating only farmer can purchase the agricultural land. Same is evident from the purchase deed and sale deed of the land in question. Undisputedly, the permission for Dholi Integrate Spinning Park Limited were sought on 03.05.2013 and assessee was doing cultivation on said land and same is evident from his income tax return wherein he has shown agricultural income. In this case, the assessee had sold the land as agricultural land, if thereafter sold land has been converted into non-agricultural purpose by the buyer of the land, so, in such circumstances, the assessee cannot be held to pay long term capital gain. Hon’ble Jurisdiction High Court in the matter of PCIT vs. Heenaben Bhadresh Mehta [2018 (8) TMI 987 - GUJARAT HIGH COURT] wherein it is held that profits from sale of agricultural land was claimed as exempt on the ground that said land was not a capital asset within the meaning of Section 2(14). Assessee assessee filed a copy of sale deed, purchase deed alongwith copy of ledger account of Dholi Gram Panchayat specifying the allocation of land and population of village wherein it is mentioned that above said land is not in Municipal area and is used for agricultural purpose only. After going through all above details, we are of the opinion that when already AO has made detailed enquiry, then on same point subsequent enquiry by the PCIT is not enquired under the law - In view of the above facts and respectfully following the Hon’ble Gujarat High Court’s order, we allow the appeal of the assessee.
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