TMI Blog2015 (9) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... used for agricultural purposes by the assessee. The Tribunal recorded that in the earlier years, the assessee had declared agricultural income, which was also accepted by the Revenue. - Decided in favour of assessee. - ITA No. 2616/Ahd/2011, ITA No. 2617/Ahd/2011, ITA No. 2618/Ahd/2011, - - - Dated:- 25-10-2013 - Shri N. S. Saini and Shri Kul Bharat, JJ. For the Appellant : Shri S. C. Tiwari, Sr. D.R. For the Respondent: Smt. Urvashi Shodhan, A.R. ORDER PER : Shri N. S. Saini, Accountant Member These are three appeals filed by the assessees against the order of CIT(A)-6, Ahmedabad, dated 11.08.2011. 2. The assessee has raised additional ground of appeal in all these appeals which reads as under: 4. Bot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts in directing the Assessing Officer to grant exemption u/s 10(37) of the Act to the assessee? 2. Short question pertains to exemption under section 10(37) of the Income Tax Act, 1961. Such question arises on the following factual background. 3. For the Assessment Year 2008-09, the assessee filed return of income. During the scrutiny assessment, it was noticed that the assessee was owner of 1/4th of a property acquired by the State, for which under the order of the Court, an additional compensation of ₹ 4,47,98,432/- was paid and therefore, was entitled to 1/4th additional compensation of ₹ 1,11,99,608/-. The assessee contended that in view of provisions of section 10(37) of the Act read with section 45(5), no capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pensation u/s 45(5) of the Act on the ground that the lands were situated near Gandhinagar and therefore not agricultural lands within the definition of Section 2(14)(iii) of the Act. Assessee's contention before Id. CIT(A) was that by virtue of Section 10(37) inserted by Finance Act, 2004 with effect from A.Y. 2005-06 enhanced compensation received on compulsory acquisition of urban agricultural land after 01.04.2004 was exempt from tax. It was also submitted if the land was agricultural land and executable as per definition of capital asset, the same would have been outside the purview of Section 45 and there was no need of introducing Section 10(37). Ld. CIT(A) agreed with the assessee to this extent that exempt u/s 10(37) was availa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee on the lands were also mentioned. In the light of this factual position of this case, we are satisfied that assessee has fulfilled the condition as laid down for claiming exemption u/s 10(37) of the Act on enhanced compensation received by him during the year under appeal on compulsory acquisition of urban agricultural lands, the order passed by the lower authorities are hereby set aside on this issue and the A.O. is directed to grant exemption as claimed by the assessee u/s 10(37) of the Act. 6. Having heard the learned counsel for the Revenue and having perused the documents on record, in our opinion, the tribunal committed no error. Section 45(5) of the Act pertains to capital gains. Sub section (1) thereof is a charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions, namely of the cultivation of such land by the assessee would be crucial. 9. We cannot dispute this proposition of the Revenue. The question is can it be stated that the assessee did not fulfill such condition. We may recall that the only ground on which the CIT(Appeals) held against the assessee was that he was staying away from the agricultural land and that he was otherwise engaged in a business. In our opinion, neither of these two facts, either in isolation or cumulatively, would be sufficient to hold that such land was not being used for agricultural purposes by the assessee. The concept of personal cultivation as accepted in agricultural land tenancy laws also recognizes, as can be seen from the statutory provisions containe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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