TMI Blog2008 (3) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... been declaring income from tailoring, agriculture and investment. She had also filed return on 5th May, 2004 declaring total income at Rs. 92,687 along with copies of receipts and payments account, capital account and balance sheet. Notice under s. 143(2) was issued to scrutinize return requiring assessee to furnish eight different details, but without anything about capital gain. On the first year (sic) on 14th Aug., 2006, assessee had disclosed sale of agricultural land for a sum of Rs. 45,50,500 and paid tax of Rs. 13,04,863 on the said capital gain. Later on, she was advised that the land was beyond 8 kms. of municipal limit, to be precise, 10.5 kms. away from Himatnagar Nagar Palika, which was not liable to capital gain; and she accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he land was situated at a distance of 10.5 kms. from Himmatnagar boundary and as such the same would not be considered as capital asset being agriculture land. Thus, it is quite clear that the assessee had not offered capital gains from sale of agriculture land under a bona fide belief which is based on the certificate of Gram Panchayat. Thereafter, the assessee revised its return and paid taxes also. In such circumstances, the explanation furnished by the assessee cannot be summarily rejected because a case of bona fide belief is established. It is also stated that on the facts of the case even tax consultant advised that there would be no liability of capital gains tax. It is thus clear that the addition has been made mainly on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hase of factory viz. Umiya Industries (P.) Ltd. AO also stated that "Further it was gathered that the assessee had sold a land and received funds against such sale. Therefore, local inquiry was carried out and information was obtained from the local land authority, which resulted Into detection that the assessee and her family members had sold 9 acres of land situated at Survey No. 242 of Bema, Tal: Himatnagar.", which fact has not been disclosed in the return of income. It is, therefore, submitted that it was not a voluntary act, but disclosure was after information received by Revenue and matter was investigated. 5. Learned counsel for the assessee submitted that it is wrong to state that Inspector's report has stated anything about cap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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