TMI Blog2019 (3) TMI 904X X X X Extracts X X X X X X X X Extracts X X X X ..... nt order that the sold land was non-agricultural land. In the result, appeal of the revenue of the assessee is allowed for statistical purposes. - ITA No. 2713 /Ahd/2017 And CO No. 12/Ahd/2019 - - - Dated:- 7-3-2019 - Shri Amarjit Singh, Accountant Member And Ms. Madhumita Roy, Judicial Member For The Revenue : Shri S.K. Dev, Sr. D. R. For The Assessee : None ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- This revenue s appeal and assessee s cross objection for A.Y. 2013- 14, arise from order of the CIT(A)-3, Ahmedabad dated 20-09-2017, in proceedings under section 143(3) of the Income Tax Act, 1961; in short the Act . 2. The revenue has filed following substantive ground of appeal:- 1 . Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnish any relevant explanation for his not offering any STCG, In fact the submission made by the assessee i.e. his bank pass book also confirms the facts that sale consideration was received by the assessee and assessee did not even file his 1TR for the year under consideration. This is a very clear and confirm case of tax evasion done by the assessee. In the light of above discussion net profit of ₹ 1,65,46,038/- as worked out is hereby treated as undisclosed STCG in the hands of assessee and added to the total income of the assessee. 4. Aggrieved assessee has filed appeal against the decision of assessing officer before the ld. CIT(A). The ld. CIT(A) has allowed the appeal of the assessee. The relevant part of the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icultural land is not capital asset chargeable to tax. The relevant provision is reproduced here under for your ready reference. No. of Sect/on 2(14)4:- From Assessment Year 2014-15 and onwards, agricultural land in India, not being land situated (1) in any area within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee , town area committee , town committee) or a cantonment board which has a population of not less than 10000;or (2) in any area within the distance , measured aerially :( 1) not being more than 2 kilometres , from local limits of any municipality or cantonment board referred to an item (a) above and which has a population of more than 10000 but not exceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assesses. In the present case, the Id. AO has observed that if the distance of geographical situation of the assessee's land is being measured form municipality limit, by way of crow's fight, them, it is within the municipal limit. ........ ............... ................... 10. Next objection of the AO was that the State Government has enhanced the municipal limit. 2006 and the distance is to be measured from new boundary of the Ahmedabad Munic: Corporation Limit. AMC limit was extended upto Sarkhej since 2006. The Id. CIT(A) has examined this aspect, and has observed that perusal of sub-clause (b) of section 2(14)(iii) would indicate that the municipal limit is to be taken from the area which has been notified by the Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty u/s. 45 would fail and accordingly, the computation provision as per section will also fail. It is clear that the sales consideration received on sale of rural agricultural land at Koth is exempt as it is not a capita! asset. The evidence on record indicates that Koth village is at a distance of more than 20 KM from the outer limit of AMC (AMC Municipal limit as per CBDT notification dated 06.01.1994). Hence it is beyond the AMC limit of 8 KM. I agree with the appellant that the Rural Agricultural Land situated at Village Koth is not a capital asset as per provisions of section 2(14)(iii) r.w.s 45 and the sales consideration is exempt. Further, as per the decision of Hon'ble Apex Court in the case of CIT vs. B.C. Srinivasa Sett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the light of the above facts, we are of the view that it will be appropriate to restore this issue to the file of ld. CIT(A) to adjudicate the veracity of the fact reported by the A.O. in the assessment order that the sold land was non-agricultural land. In the result, appeal of the revenue of the assessee is allowed for statistical purposes. C.O. No. 12/Ahd/2019 filed by assessee 6. Since, we have set aside the appeal of the revenue to the file of ld. CIT(A) for adjudicating the veracity of the fact reported by the assessing officer in the assessment order that the sold land was non-agricultural land, therefore, the cross objection of the assessee has become infructuous and the same is dismissed 7. In the result, the appeal o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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