TMI Blog2010 (12) TMI 1168X X X X Extracts X X X X X X X X Extracts X X X X ..... JUDICIAL MEMBER : This is an appeal at the behest of the Assessee which has emanated from the order of Learned CIT(Appeals)-II, Surat dated 04/11/2009. The substantive ground which is argued before us is Ground No.1; reproduced below:- (1) On the facts and circumstances of the case, the learned Commissioner of Income-tax (Appeals) was not justified in directing the appellant to compute cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has treated the same as capital receipt not liable to tax, however, the Assessing Officer has assessed the same as the income of the assessee. 3. When the matter was carried before the first appellate authority, the Learned CIT(Appeals) has accepted that it was a capital receipt but subject to capital gain tax. The Learned CIT(Appeals) has directed to compute the capital gain tax ari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me to be capital receipt. The order of the CIT(A) is accepted by the Revenue. Thus, only question before me is whether the capital receipt is chargeable to capital gain tax or not. As per section 45 any profit or gains arising from the transfer of capital asset, is chargeable to tax. Thus, transfer of capital assets is a necessary condition for chargeability of capital gain tax. In the case before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the agricultural land. Hence, the directions given by the Learned CIT(Appeals) to compute the receipt for capital gain tax purpose was modified. 5.1. We respectfully follow the above cited decision and in identical manner modify the directions of the Learned CIT(Appeals) and allow this ground of appeal of the assessee. 6. In the result, the appeal of the Assessee is allowed. Order si ..... X X X X Extracts X X X X X X X X Extracts X X X X
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