TMI Blog2019 (11) TMI 855X X X X Extracts X X X X X X X X Extracts X X X X ..... ect matter of assessment. Accordingly, I do not find any substance and merit in ground no. 1(a) of the assessee s appeal to challenge the validity of reopening. The same is rejected. Addition being long term capital gain on sale of land - HELD THAT:- Undisputedly the land was sold by the assessee to M/s. Manglam Developers who has developed the entire township and plotting scheme on this land. The land was transferred for non agricultural purpose and, therefore, it was no more an agricultural land even at the time of transfer when the intention of the parties was undisputedly to use the land for non agricultural purpose. Secondly, as per the provisions of section 2(14)(iii)(b) it is clear that the distance has to be measured from Municipal limits to the area in which the land is situated and not to a particular piece of land sold by the assessee. Once the area is within 8 kms from the Municipal limits, then even if the particular land is beyond that distance of 8 kms, it will not be excluded from the definition of capital asset being an agricultural land. Therefore, all these contentions of the assessee are only with respect to the particular land in question and no such disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Relief may please be granted by quashing the action of ld. CIT (A) and deleting the addition of ₹ 2,18,564/-. 3. In the facts and circumstances of the case and in law, ld. CIT (A) has erred in confirming the action of ld. AO in considering the report of Inspector of Income Tax/Village Patwari, Natata dated 03.12.2016 for assessing the location of the said agricultural land and, thereby, not considering the reports issued by Tehsildar/village Patwari, Natata dated 25.03.2014 in respect of the land sold in August 2012. The action of the ld. CIT (A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by accepting report issued by Tehsildar/village Patwari, Natata dated 25.03.2014 for assessing the location of land. 4. The assessee craves his right to add, amend or alter any of the grounds on or before the hearing. 2. At the time of hearing, the ld. A/R of the assessee has submitted that the assessee does not press ground no. 1(b) of the appeal and the same may be dismissed as not pressed. The ld. D/R has raised no objection if the ground no. 1(b) of the assessee s appeal is dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due verification of the fact regarding the actual distance of the land from the Municipal limits. He has relied upon the orders of the authorities below. 5. I have considered the rival submissions as well as the relevant material on record. The AO has reopened the assessment by recording the reasons as under :- On the basis of information brought on record, it was noticed that the assessee has jointly with two persons sold a land of 11 bigha 4 biswa situated at village-Natata, Patwar, Halka-Natata, Tehsil- Jamwaramgarh, Dist. Jaipur for sale consideration of ₹ 2,80,00,000/-, out of which the assessee s part was ₹ 70,00,000/-. Enquiry was conducted by the ITO (Intelligence)-I, Jaipur u/s 133(6) of the I.T. Act, 1961 and in response to the notices issued, the assessee produced computation of total income and submitted that the alleged agriculture land is situated beyond 8 KM from the municipal limits of Jaipur and therefore, it was not a capital asset. From computation of income submitted by the assessee it was found that the assessee has shown ₹ 70,00,000/- as exempted income being received from sale of agricultur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he validity of reopening. The same is rejected. Ground No. 2 and 3 are regarding addition of ₹ 2,18,564/- sustained by the ld. CIT (A) being long term capital gain on sale of land. 6. The ld. A/R of the assessee has referred to the submissions made before the AO and reproduced at page 7 of the assessment order as under :- The agricultural land I possessed had no access from Siawad Road. We had to come via Kukas as it was the only motorable road during the year 2012. Right in front of my land there was a stone quarry where mining use to happen they would cross through my land and then a government land to reach Saiwad road/Natata. Then on my left and right were niji Khatedari land. So one could access my land only from Kukas area and not Natata. I sold this land to Manglam Developers in 2012 who then in 2014 developed an entire Township/Plotting Scheme and did all the land development. To make this scheme saleable they made some road network. Some passes through this land. Further they with the help of panchayat Natata developed one more access road though the government land and got the ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant material on record. Undisputedly the land was sold by the assessee to M/s. Manglam Developers who has developed the entire township and plotting scheme on this land. The land was transferred for non agricultural purpose and, therefore, it was no more an agricultural land even at the time of transfer when the intention of the parties was undisputedly to use the land for non agricultural purpose. Secondly, as per the provisions of section 2(14)(iii)(b) it is clear that the distance has to be measured from Municipal limits to the area in which the land is situated and not to a particular piece of land sold by the assessee. Once the area is within 8 kms from the Municipal limits, then even if the particular land is beyond that distance of 8 kms, it will not be excluded from the definition of capital asset being an agricultural land. Therefore, all these contentions of the assessee are only with respect to the particular land in question and no such dispute has been raised that the area in which the land is situated is beyond 8 kms from the Municipal limits. Accordingly, in the facts and circumstances of the case, I do not find any merit or substance in the ground nos. 2 and 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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