TMI Blog2015 (7) TMI 1140X X X X Extracts X X X X X X X X Extracts X X X X ..... by : Mr. P.Radhakrishnan, JCIT Respondent by : Mr. K.Sridhar, C.A. O R D E R Per Challa Nagendra Prasad, JM: This appeal is filed by the Revenue against the order of the Commissioner of Income Tax (Appeals-V), Chennai dated 23.09.2014 for the assessment year 2010-11. The cross objection is filed by the assessee. The only issue in the appeal of the Revenue is that Commissioner of Income Tax (Appeals) erred in directing 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 asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts that land sold by the assessee is agricultural land and thus Commissioner of Income Tax (Appeals) has rightly allowed the claim of the assessee. 5. Heard both sides. Perused orders of lower authorities. The issue in appeal has been elaborately considered by the Commissioner of Income Tax (Appeals) with reference to the documents furnished and the submissions made before him and the contentions of the Assessing Officer and allowed the claims of 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 l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant claims. Similarly, in the case of Sarifabibi Mohamed Ibrahim and Others Vs. CIT in 204 ITE 631, the Hon'ble Supreme Court has held that the agricultural land was sold to a cooperative society, and before the date of sale, application was made to concerned authorities to convert the said land into housing plots, and within 3 days of registration the society commenced its housing activities. Whereas in the present case, the appellant has not 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 11/10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s meant or set apart and can be used. In the case of the appellant the subject land sold was agricultural land which was not only as classified in the revenue records but also it was subjected to the payment of land revenue tax and was used for agricultural purposes only at the relevant time of sale. Hence the same cannot be treated as a capital asset. 6.4 Keeping in view of the various citations and supporting documents filed by the AR of the appellant 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 work ..... X X X X Extracts X X X X X X X X Extracts X X X X
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