9911796707
TMI Blog2009 (10) TMI 985X X X X Extracts X X X X X X X X Extracts X X X X ..... nue in their appeal reads as under:- 'The Id. Commissioner of Income-tax (Appeals)-XVAhmedabad has erred in law and on facts ¡n giving relief out of addition of Rs.86, 78.746/- made by the AO in respect of income arising out of transfer of capital assets in terms of section 2(14) (iii) of the I. T. Act when the land ¡n question was for industrial use and was not agricultural land." 2 The brief facts of the case are that during the year the assessee has sold agricultural land for an amount of Rs.93,90,500/- on 14-02-2004. The purchase cost of acquisition and the document expenses for purchase of the said land was Rs.7,1 1,754/-. The survey-wise details of land along with details of purchase cost and document expenses, date of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 2 of the Act. Accordingly, since the said agricultural land is not a capital asset, there is no capital gain on the sale of said agricultural land. The assessee in support of the contention that Village Matoda, Taluka Sanand is having a population of less than 10,000 and it is located more than 20 Km from away from Ahmedabad Municipal Corporation, the certificate of Gram Panchayat was also filed along with the return of income. The AC considered the contention of the assessee that he purchased the agricultural land and sold the same during the same financial year i.e. 2004-05 does not appear to be an event which occurred by chance and thereby the assessee earned STCG. Because the assessee purchased the land with confirming party as G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee did not file the requisite details. After considering all the facts, the assessee's claim that the Short Term Capital Gain of Rs.86,78,746/- is exempt u/s 2(14)(iii) of the Act, is not correct and the income from sale of land ¡s taxable as business income of the assessee. 3. Aggrieved, the assessee preferred an appeal before the OIT(A). The CIT(A) deleted the addition by observing as under: "4 Ground No. 1 is addition on account of short term capital gain of Rs. 86,78,746/- This has been discussed on page 13, 14 and 15 of the assessment order. The AO added short term capital gain of Rs.86, 78,746 claimed exempt by the appellant u/s 2(14)(iii) of the I. T. Act which exempts agricultural land from the category of capital asset ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7/12 Extracts, which show that the assessee is the owner of that agricultural land and the said land is situated in village known as Matoda, Taluka Sanand with population of less than ten thousand which also proves that this land is agricultural land and not a capital assets within the meaning of "Section 2(14)(iii) of the Act. That apart, the land purchased and sold by the assessee has been proved to be an agricultural land and accordingly, the addition has rightly been deleted by the C IT(A) and we confirm the same. This issue of the Revenue's appeal is dismissed. Now coming to CO of the assessee in CO.121/Ahd/2009. 5. After hearing the rival contentions, we find that both the sides fairly agreed that the CO of the assessee is support ..... X X X X Extracts X X X X X X X X Extracts X X X X
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