TMI Blog2021 (5) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... bhoomi (barren land) as non-agricultural land : Ground No.1 : On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in accepting the assessee's claim that profit of ₹ 2,08,56,430/- arising on sale of 9.060 hectares of padat bhoomi , which literally means barren land , falling within the area of Naya Raipur Development Authority (NRDA), is from sale of agricultural land and therefore, not liable to tax on the reasoning that agricultural land is not a capital asset within the meaning of section u/s.2(14) of the IT. Act. Ground No.2 : On the facts and in the circumstances of the case, the Ld. CIT(A) is not justified in ignoring the clinching evidence available on record that the land in question was padat bhoomi , which literally means barren land as opposed to krishi bhoomi , which means agricultural land and also the fact that no agricultural operation had been carried out on such land ever. Therefore, by all means, the land in question was non-agricultural land and hence, rightly liable to tax as a capital asset within the meaning of section u/s.2(14) of the IT. Act. Letter No.342 dated 21.03.2016 of the Tahasildar, A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. In this regard, the assessee also produced the copy of the sale deed and a clarification was also obtained from the Tehsildar, Abhanpur that it is padat bhoomi means agricultural land. The AO noticed that the payer has deducted TDS u/s.194-IA of the Act. He also observed from the revenue inspector s report that the agricultural activity has not been done by the assessee in the financial year 2012-2013 and there was no any proof for cultivation of the agricultural produce and the assessee has not shown any agricultural income in his return of income in the previous years. The AO examined the issue in the light of Section 2(14) of the Act and held that it was not an agricultural land as per Section 2(14) of the Act. He treated it as a business income because the income has been generated as an adventure in the nature of trade and commerce. Accordingly, the AO added ₹ 2,08,56,430/- to the total income of the assessee. 4. Feeling aggrieved from the order of AO, the assessee filed appeal before the CIT(A) and the CIT(A) after considering the documents, allowed the appeal of the assessee. 5. Aggrieved from the order of CIT(A), the Revenue is in appeal before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd and which has a population bfnot less than ten thousand; or (b) In any area within the distance, measured aerially-| (I) Not being more than two kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a ; population of more than ten thousand but not exceeding one lakh; or (II) Not being more than six kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than one lakh but not exceeding ten lakh; or (HI) Not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten lakh. From the submissions tendered before the undersigned, it is observed that during the assessment proceedings before the AO, the certificate of the local Patwari dt. 08/04/2015 had been duly finished which stated that the plot of land in question was at a distance of more than 10 Kms from the nearest municipal boundary of Raipur, This certificate was duly taken on record by the Assessing Officer and its authenticity has not been questioned by the AO. Hence, the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r this plot of land has been sanctioned by the competent authority. Therefore, in light of the judicial decisions quoted above and the Tahsildars report, it becomes apparent that there is no force in the AO's contention that the plot of land will be deemed 'non-agricultural' simply because no cultivation or agricultural operations are taking place on it or that no crops are being grown. Hence, in view of the preceding arguments it can be stated with certainty that the plot of land acquired by the Naya Raipur Development Authority (NRDA) was agricultural in nature and therefore exempt from the levy of a capital gains tax. Accordingly, the addition of ₹ 2,08,56,430/- made by the AO is deleted and the asses^see's appeal is upheld. (Relief allowed: ₹ 2,08,56,430/-} The assessee's appeal is allowed. During the course of hearing, ld. AR of the assessee also filed copy of the definition of the agricultural land which reads as under :- (iii) agricultural land- in India, not being land situate- (a) in any area which is comprised within the jurisdiction of a municipality- (whether known as a municipality, municipal corporation, noti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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