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2018 (10) TMI 735

Addition being the capital gains on the sale of ancestral agricultural land - Whether the impugned ancestral agricultural land sold by the assessee is a capital asset? - Held that:- As referring to the copy of notification issued by the Income Tax Department and mentioning the detail of location of the impugned agriculture land submitted that the alleged land is not a capital asset as provided in Section 2(14) of the Act in view of above referred notification and it falls outside the municipal limit as provided in this notification. Further both the parties have no objection if the issue is set aside to the file of A.O for making necessary verification. - We accordingly set aside the issue to the file of Ld.A.O and also direct the asses .....

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PER MANISH BORAD, A.M: This appeal of Assessee pertaining to A.Y. 2008-09 is directed against the order of Ld. Commissioner of Income Tax(Appeals)- Ujjain, (in short CIT(A) ), dated 21.04.2017 which is arising out of the order u/s 264/143(3) of the Income Tax Act 1961(hereinafter called as the Act ) framed on 26.02.2014 by ITO 2(2), Ujjain. 2. The assessee has raised following grounds; 1. The Ld. CIT(A) has erred in upholding the impugned addition of ₹ 8,90,000/- being the capital gains on the sale of ancestral agricultural land. 2. The Ld. CIT(A) has erred in not considering the deduction U/S 54B for the purchase of the land when full payment was made and the possession was taken. The deduction may please be allowed. 3. The Ld. CIT(A .....

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land is not a capital asset as provided in Section 2(14) of the Act in view of above referred notification and it falls outside the municipal limit as provided in this notification. 5. Further both the parties have no objection if the issue is set aside to the file of Ld.A.O for making necessary verification. 6. We accordingly set aside the issue to the file of Ld.A.O and also direct the assessee to obtain a certificate from local revenue office/patwari about the location of alleged land and further to prove that the same is covered by the notification referred herein above. In case the Ld.A.O is satisfied with the necessary documents furnished by the assessee then it can be inferred that the alleged land being not a capital asset therefor .....

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e assessee paid ₹ 14,00,000/- to Mr. Nagulal (seller) in May, 2008. He signed the first sale deed on 2.6.2008 for the land valuing at ₹ 5,80,000/- and after 3 years he signed another sale deed for the land valuing at ₹ 8,20,000/-. We are of the considered opinion that the purchase of land has taken place in two parts. The affidavit signed by Shri Nagulal has been procured by the assessee much after the completion of the assessment proceedings. The assessee is also been unable to prove the source of ₹ 14,00,000/- paid by him in May, 2008 nor any justification has been proved to accept the impugned transaction of transferring of agriculture land after a lapse of 3 years even when the consideration was alleged to have b .....

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