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TMI Blog2015 (7) TMI 1140X X X X Extracts X X X X X X X X Extracts X X X X ..... ecting the Assessing Officer to delete addition made on account of capital gains on sale of agricultural land. In other words, the issue is whether the land sold by the assessee is agricultural land or non-agricultural land for the purpose of capital gains. 2. The assessee filed return of income for the assessment year 2010-11 on 8.4.2011 admitting income of Rs. 1,79,500/- Assessment was completed on 28.3.2013 under section 143(3) of the Act determining long term capital gains at Rs. 85,94,381/-. While completing the assessment Assessing Officer denied exemption claimed under section 54 and 54B of the Act holding that property sold was only a vacant land and will be used for housing plots. On appeal, Commissioner of Income Tax (Appeals) al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee holding as under:- "6.1 I have verified the submissions made by the AR of the appellant. As per the document submitted, Revenue records, Patta, VAO certificate, the land has been classified as agricultural land. The AR of the appellant in support of her claim argued that if the land usage is other than agriculture, the records would have shown it clearly indicating the activities which is other than agriculture. The land has been classified in Revenue records as agricultural and the Patta shows as agricultural land which clearly indicates that the land sold is only an agricultural land and it is exempt from capital gains tax. Any sale of agricultural land exempted u/s 2(14) of the IT Act. The appellant has been carrying on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot converted the nature of land, till the date of sale and it continued to be remained as agricultural land in revenue records. Hence the ratio held in the Apex Case court cannot be applicable to the present case. Even in the case of , Mis Pallava Resorts P Ltd in ITA NO. 7941mds111, dated 11/1012012, the main activity of Pallava Resorts is setting up of Resorts and their holding company Questnet India Pvt. Ltd., is engaged in development of resorts. Therefore the Court held that the land cannot be classified as agricultural land. Now in present case, the appellant is not engaged in any commercial activity and the land is situated outside the limits of Municipal Corporation and agricultural operation were carried out and hence the contentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant and also relying on legal position enunciated by various case laws mentioned supra, the sale consideration received on sale of agricultural land is exempt u/s 2(14) of the IT Act and accordingly the Assessing Officer is directed to delete the addition made on account of capital gains worked out by the him on account of sale of agricultural land. The appellant succeeds on this ground of appeal." 6. On going through the above order of the Commissioner of Income Tax (Appeals), we do not find any valid reason to interfere with the findings of the Commissioner of Income Tax (Appeals) in holding that land sold by the assessee is agricultural land only. For the elaborate reasons given by the Commissioner of Income Tax (Appeals), we hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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