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 →

The Income Tax Officer, Ward 8 (4) , Pune Versus Shri Yogesh Surendra Shah, Shri Surendra S. Shah, Smt. Chaya S. Shah, Shri Dinesh Surendra Shah

2017 (1) TMI 719 - ITAT PUNE

Assessability of gain arising on sale of agricultural land - whether the same is exempt from tax? - measurement of distance for the purpose of deciding the character of land - Held that:- The first issue as to whether any agricultural activity is being carried out or not has been elaborately considered by the CIT(A) and he has given finding that the entries in 7/12 extract evidenced the cultivation of land and the same remained uncontroverted. The Revenue before us has also failed to controvert .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ontal plain or as per crow’s flight. The Talat hi in the certificate has certified that the distance from municipal limits was about 13 kilometers i.e. beyond eight kilometers. Accordingly, we uphold the order of CIT(A) in holding that the gain arising from sale of agricultural land is not to be taxed in the hands of assessee. Upholding the same, we dismiss both the grounds of appeal raised by the Revenue. - Decided in favour of assessee. - ITA Nos. 108 to 111 /PUN/2013 - Dated:- 5-1-2017 - Ms. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

appointed date of hearing, none appeared on behalf of the assessee nor any application was moved for adjournment. We proceed to decide the appeals after hearing the learned Departmental Representative for the Revenue. 3. All the appeals filed by the Revenue relating to connected assessee on identical issue were heard together and are being disposed of by this consolidated order for the sake of convenience. However, reference is being made to the facts and issue in ITA No.108/PN/2013 to adjudica .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

al income in his return of income filed. 2. Whether on the facts and circumstances of the case and in law, the CIT(A) was justified in measuring the distance in terms of approach road by ignoring the provisions contained in Sec. 11 of the General Clauses Act which clearly specifies that unless a different intention appears, distance has to be measured in a straight line on a horizontal plane. The said provisions are mandatorily applicable to the Income Tax Act being a Central Act and further sup .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Mouje Chandkhed and the long term capital gain arising on sale of said agricultural land was claimed as exempt. The Assessing Officer in order to verify exact location of plot of land in question wrote a letter to the Asst. Director, Town Planning Pune Branch, Pune and requested to furnish exact location of the land and the aerial distance from municipal limits of PMC/PCMC. In response thereto, vide letter dated 05.12.2009, it was reported that the plot of land in question was situated at about .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rized as agricultural land. In support of its claim, the assessee produced copy of 7/12 extract but the same was rejected by the Assessing Officer for the following reasons:- 5.6 The assessee's submission is carefully considered. However, I am not inclined to accept the explanation submitted by the assessee for the following reasons: (1) The Plot of lands sold by the assessee in question situate in a pre-dominant developed area and its physical characteristics, surrounding situation and use .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

crops were grown or cultivated. Copy of 7/12 extract is enclosed as Annexure-II with this order for better appreciation of the facts. (4) The 13th test lays out that -" Whether an agriculturist would purchase the land for agricultural purposes at the price at which the land was sold and whether the owner would have ever sold the land valuing it as a property yielding agricultural produce on the basis of its yield- The a n sw e r to this te st is d e fin ite ly NO. As the purchaser has not p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ystal clear that the plots of land sold by the assessee is situated in the predominant developed area and it did not fulfilled the test laid down by the Hon'ble Supreme Court in case of Sarifabibi Mohmed Ibrahim And Other. Vs Commissioner of Income-Tax 204 ITR 631. Therefore, the plots of land sold by the assessee are characterized as "Capital Asset" as defined in section 2(14) of the I T Act, 1961 and as such assessee is liable to pay Long Term Capital Gain. Further, as discussed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tax under the head "Long Term Capital Gain". Penalty proceedings u/s 271(1)(c) is initiated separately for filing inaccurate particulars of income. 7. The Assessing Officer obtained the Valuer s report from the DVO as on 01.04.1981 and confirmed the income from long term capital gains. 8. Before the CIT(A), the assessee filed detailed submissions as well as additional evidence in respect of certificate from Talat hi regarding the distance of plot in question as well as the valuation o .....

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 assessee in reply explained the sequence of events which is reproduced under para 7 along with his submissions at pages 8 and 9 of the appellate order. The CIT(A) noted that the assessee was confronted with the Town Planning Report on 10.12.2009 and the assessment was completed on 22.12.2009, therefore, there was justification in the grievance of assessee that he was prevented by sufficient opportunity. The CIT(A) also noted that the Assessing Officer had not provided sufficient time to me .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2003 & 2004, major part of land has been shown as Gras land (Gavat) i.e. 10.73H. Thereafter, the Gavat land has been shown at 1.73 H and rest of the land has been shown under various crops as stated above. As far as Gavat land is concerned, the appellant submits that this is not the barren grass land but animal feed grass land which is used as a cattle feed. From the extract of 7/1 2, it is seen that major part of the land i.e. 10.7 3 has been under grass land up to 20 0 5. Thereafter, the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ficer had not examined as to how the cultivation was carried out by the appellant. Whether the same was carried out by the appellant himself or by some other person employed for this purpose. No such details have been brought on record in this regard. The Assessing Officer could have very well proved the same, had he examined the issue in detail on the above lines. However, despite giving the opportunity in the remand order, the Assessing Officer has failed to do the same. Therefore, the issue i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

land. Vis-à-vis, the distance issue, the CIT(A) vide para 11 has held as under:- 11. As far as the distance issue is concerned, it is seen that the Assessing Officer has asked the Asstt. Director Town Planning Department to provide aerial distance from the Municipal limits. It is settled law that the distance is to be measured in terms of approach road. In the case of CIT Vs. Satinder Pal Singh, 229 CTR 82, Hon ble Punjab & Haryana High Court has held that for measurement of distance .....

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