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TMI Blog2014 (1) TMI 1404X X X X Extracts X X X X X X X X Extracts X X X X ..... cer to verify assessee's share in the properties on the basis of any formal settlement deed, if any, without considering the fact that the assessee was governed by Portuguese Civil Code of 1986 & accordingly, income of the assessee had to be computed in terms of S. 5A of I.T. Act, 1961." 3. At the outset it may not noticed that this appeal is barred by limitation by one day. The assessee filed an affidavit alongwith reasons for the delay in filing the appeal. Since the assessee has sufficient cause, the delay of one day is condoned and the appeal is admitted. 4. Though notice was sent to the assessee by registered post, at the address given in Form No. 36, the same was returned unserved with the postal remarks "Out of Mumbai". I, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... class municipal area under the Goan law and the said village has a population of less than 10000 and it is 25 kms away from the boundary of Madgaon Municipality, which is a notified municipality under section 2(14) of the Income Tax Act. In other words, the said plots of land are not covered by municipal area and hence they cannot be treated as 'capital assets'. Accordingly any gain upon transfer of the said land is exempt as the said gain from the agricultural land is not taxable. It is also submitted that though the assessee, through oversight, declared it as capital gain/loss in the income tax return, it was explained before the AO that the same are pieces of agricultural land and as such not assessable to capital gain tax. With regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en submissions but the learned D.R. has furnished no written submissions till date. He, however, relied upon the orders passed by the tax authorities. 9. At the time of hearing the Bench wanted certain clarifications with regard to the fact as to whether the Sanguem Municipal Council is a notified municipal area or not since much emphasis was laid by the CIT(A) on that aspect. The claim of the assessee that the population therein is less than 10000 and it is beyond 25 kms from the notified area was not controverted by the learned D.R. by placing any material on record. The case of the assessee was that as per the peculiar laws of Goa, pieces of agricultural land are sold to the tenants and these lands in turn were cultivated by them over a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that the land is situated within the municipal limit under section 2(14) of the Act), (e) what is the share of the assessee out of the land sold, and (f) whether the comparable cases mentioned by the valuation officer, which the AO has referred to, were comparable to the lands in dispute. He may also obtain information with regard to the bonds purchased by the assessee to verify as to what extent the assessee is entitled to exemption under section 54EC of the Act, in the alternative. With these observations the appeal is hereby set aside to the file of the CIT(A), who is directed to give the assessee proper opportunity of being heard. 10. In the result, filed by the assessee is treated as allowed for statistical purposes. Order pronou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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