TMI Blog2018 (8) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... as per master plan. Thus, on the date of sale, the land in question was not an agricultural land. The same would qualify to be considered as capital assets u/s 2(14) of the IT Act. The sale deed in question is executed by the assessee and is document produced by the assessee. The assessee is therefore bound by the contents of the registered sale deed. The Agreement to Sale has no relevance to the matter in issue on execution of the registered sale deeds. Since prior to sale of the property in question, it was declared as industrial plot by the competent authority, therefore, it could not assume the character of agriculture land. Additions confirmed - Decided against the assessee. - ITA No. 264/Del/2018 - - - Dated:- 10-8-2018 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chankbandi, Khasra and Khatauni and other documents which proved that when land was sold, agricultural activities were done on the same land. The purchaser has purchased the land for industrial purpose but assessee has not sold the land as industrial plot. In the agreement, it was not recorded as industrial plot. The Ld. CIT(A), however, did not accept the contention of the assessee and rejected the claim of the assessee of transfer of agriculture land. The assessee made an alternate claim that she purchased agricultural land out of the consideration of transfer of land, therefore, such benefit may be allowed. The Ld. CIT(A) directed the AO to verify the claim of the assessee and allow as per law. The findings of Ld. CIT(A) in para 5.2 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax Act. Therefore, in my opinion, the AO was fully justified in charging the capital gain on sale of the land in question. The AO has computed LTCG of ₹ 49,45,757/- and the appellant has not indicated any mistake in the calculation. Therefore, the capital gain computation is taken to be correct. The appellant has claimed that she had purchased agricultural land out of the consideration she received for selling the land on which capital gain has been determined. She is claiming that due benefit for purchase of such agricultural land should be allowed. The appellant has furnished copy of the purchase deed which shows that she purchased agricultural land of ₹ 27,00,000/- on 29.08.2009. The AO is being directed to verify the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that possession of the property in question was not transferred at the time of Agreement to Sale. After the Agreement to Sale the SDM vide order dated 26.02.2009 changed the land use and declared the land as nonagricultural. The sale deed dated 24.03.2009 was registered thereafter. It is therefore clear that the sale transaction was completed on execution of the sale deed and at that time the land had acquired the character of non-agricultural land. Thus, on the date of sale, the land in question was not an agricultural land. The same would qualify to be considered as capital assets u/s 2(14) of the IT Act. The Ld. Counsel for the assessee did not dispute the findings of the fact recorded by the Ld. CIT(A) and reproduced above. He has m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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