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TMI Blog2020 (9) TMI 870X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue of adding capital gains arsing out of sale of agricultural land for the purpose of computing book profit u/s. 115JB of the Income-tax Act, 1961 (for short "the Act"). 2. Brief facts of the case are that the assessee is a company, deriving income from agricultural activities and earning from investments. For the assessment year 2009-10, they have filed their return of income on 30.09.2009 declaring nil income but paid tax on book profits u/s. 115JB of the Act at Rs. 5,73,70,009/-. The return was processed u/s. 143(1) of the Act. Subsequently, during the assessment proceedings relating to assessment year 2010-11, ld. Assessing Officer noticed that the assessee claimed exempt income to the tune of Rs. 21,71,74,573/- on account of pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eTribunal set aside the order of CIT(A) and remanded the matter to the file of Assessing Officer for consideration of the evidence, and in the remand assessment, the Assessing Officer accepted the income earned from sale of land as exempt u/s. 10 of the Act, as the land sold was located more than 8 Kms from Municipal limits. 6. Taking note of such assessment order passed pursuant to the remand order by ITAT for assessment year 2010-11, the ld. CIT(A) found that since the village where the sold land was located was 8 Kms away from the Municipal limits, the very basis of Assessing Officer for reopening the assessment proceedings for the AY 2009- 10has no locus standi, as the Assessing Officer himself admitted the said fact. He, therefore, al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Companies Act, once any income is not declared by the assessee or treated by the assessee in the books of accounts as agricultural income, then the same cannot be allowed as deduction as per the provisions under section 115JB of the Act, and the book profits for the purpose of section 115JB of the Act shall, therefore, included the amount realized on the sale of the land. On this premise, he argued that the CIT(A) exceeded the authority given under law because when the assessee himself offered certain income by crediting the same to the profit and loss account, it is not open for the CIT(A) to tinker with the financials of the assessee and to grant relief. He, therefore, prayed that grant of relief given by CIT(A) in so far as the tax off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce or on account of ignorance included in his income any amount which is exempt from payment of Income-tax or is not income within the contemplation of law, the assessee may bring the same to the notice of the Revenue, which if satisfied, may grant the assessee necessary relief and refund the tax paid in excess, if any. 11. We have gone through the record in the light of the submissions made on either side. As of now, it an admitted fact that the land that was sold was located in village Kishora, which is more that 8 kms away from municipal limits and the profits earned on sale of such land are exempt u/s. 10 of the Act. Further, provisions of section 115JB(2)(k)(ii) provide that the amount of income to which any of the provisions of secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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