Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Commissioner of Income Tax Versus Sri Vijay Singh Kadan

2015 (9) TMI 755 - DELHI HIGH COURT

Computation of capital gain - whether sale of the said land is not taxable because the land was agricultural land which did not fall within the definition of capital asset under Section 2(14)? - Whether distance up to the land should be considered or up to the village within which such land is situated? - Held that:- The Court is of the view that for the purposes of Section 2 (14) (iii) (b) of the Act, the distance had to be measured from the agricultural land in question to the outer limit of t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

m the former Additional Director General, CPWD that the distance of the land from the outer limit of the Gurgaon Municipality was 10.4 Kms, the ITAT held that the land owned by the Assessee did not fall within Clauses (a) or (b) of Section 2 (14) (iii). - Decided against revenue. - ITA 714/2015 - Dated:- 14-9-2015 - S. Muralidhar And Vibhu Bakhru, JJ. For the Appellant : Mr Rohit Madan and Mr Zoheb Hossain, Standing Counsel For the Respondent : Mr Piyush Kaushik, Advocate ORDER CM No. 19310/2015 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

property admeasuring 5.9625 acres located at Village Ghata, Tehsil Sohna, District Gurgaon. The stand of the Assessee was that the capital gain from the sale of the said land is not taxable because the land was agricultural land which did not fall within the definition of capital asset under Section 2(14) of the Act. 5. According to the Assessee, the land did not fall within a distance of 8 km from the outer limit of the Gurgaon Municipality. The Assessee produced a certificate of the patwari in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

The AO preferred the certificate of the Tehsildar, Sohna District and of the Engineer of the Gurgaon Municipal Corporation which stated that the distance was 6.6 Kms. The AO interpreted the Circular of the CBDT which clarified that for the purpose of Section 2(14)(iii)(b) of the Act, agricultural lands that would be exempt from the definition of 'capital asset' were those that were located in "areas upto a distance of 8 Kms from the municipal limits in all directions as under: " .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

iew that the distance had to be calculated from the outer limit of Gurgaon municipality to Village Ghata where the land was located." Accordingly, the AO held that as per Section 2(14)(iii)(b) of the Act, the agricultural land sold by the Assessee was a capital asset. He accordingly made an addition of ₹ 7,75,12,500/- to the income of the Assessee as long term capital gains. 6. The CIT (A) rejected the certificates relied upon by the AO and the Assessee. He concluded that "the di .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e DGDC Data Centre, New Delhi and concluded that the "shortest distance along the road from IFFCO Junction on the Municipal boundary up to Northern outer limit of Ghata, the Village in which the land is situated is 7.17 Kms. along the road." Consequently, the CIT (A) affirmed the order of the AO that the land sold by the Assessee was a capital asset. 7. Aggrieved by the said order of the CIT(A), the Assessee preferred an appeal before the ITAT. The question that arose for consideration .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the local limits of any municipality' would mean the land should be within such area which is not more than 8 Kms. from the local limit of the municipality." 8. The ITAT concluded that the land had to be within the distance of 8 Kms. from the outer limit of the Gurgaon municipality and not from the outer limit of ITA 714/2015 Page 5 of 6 the village Ghata in which the land was located. On the strength of the certificate produced by the Assessee from the former Additional Director Genera .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version