TMI Blog2022 (12) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... was needed for the purpose of Town Planning Scheme or the Development Plan and therefore, it was deemed to be the land needed for the public purpose within the meaning of Land Acquisition Act. Deed of transfer of the land was signed between the SMC represented by the Director of the Town Planning and the assessee along with his family members - The proceedings u/s 77 of the BPMC Act were pending at the time of registration of sale deed for transfer of property and pending the reservation, efforts were made by the farmers and SMC to negotiate the price of land to be transferred in favour of the SMC to avoid the compulsory acquisition of the land by SMC under Sections 77 and 78. This negotiation had been vetted by the Standing Committee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctual aspect never having been raised by the department and none of the authorities having opined anything on this, that cannot furnish the ground for disallowing anything under Section 10(37) of the Act. Tax Appeal is dismissed. - R/TAX APPEAL NO. 636 of 2022 - - - Dated:- 20-12-2022 - HONOURABLE MS. JUSTICE SONIA GOKANI AND HONOURABLE MRS. JUSTICE MAUNA M. BHATT Appearance: MRS KALPANAK RAVAL with MR KARAN SANGHANI (1046) for the Appellant(s) No. 1 for the Opponent(s) No. 1 ORAL ORDER (PER : HONOURABLE MS. JUSTICE SONIA GOKANI) 1. In this appeal under Section 260(A) of the Income Tax Act, 1961, being aggrieved and dissatisfied with the order dated 09.10.2020 passed by the Income Tax Appellate Tribunal, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of information received that the Surat Municipal Corporation ( SMC for short) had purchased land at Dindoli, Surat from land owners for construction of Sewage Treatment Plant and the land since was falling within the limits of SMC, it was held to be a capital asset. 2.1. During the course of the assessment proceedings, the Assessing Officer held that the sale of transfer of land was signed between the SMC and the assessee and the land was transferred by negotiations and was not acquired under compulsory acquisition of Gujarat Town Planning Act, 1976. 2.2. The Assessing Officer on the basis of the inquiries conducted from SMC held that the land was sold through negotiations and hence, the assessee was not eligible for benefits of Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SMC for Sewage Treatment Plant was an agricultural land which has been compulsorily acquired by SMC under the provisions of Section 107 of the GTP UD Act. 2.5. The necessary conditions required for the transactions deemed to be for the public purpose has been upheld by this Court. Again there are concurrent findings of both, the CIT(Appeals) and the Tribunal, hence, the Court was of the opinion that there was no substantial question of law arisen for it to consider. 3. We have heard learned advocate Mrs. Kalpana Raval assisted by learned advocate Mr. Karan Sanghani. According to him, the Tribunal had not considered the fact that the exemption under Section 10(37) is only available to the individual or Hindu Undivided Family. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that the assessee was carrying on agricultural activity on the land in question being Survey No.192, Block No.305 in village Dindoli. The Tribunal has also concurred with the finding recorded by the Commissioner (Appeals) that the land in question is situated within the municipal limits of SMC in terms of item (a) of sub-clause (iii) of clause (14) of section 2 of the Act. Insofar as the land in question having been acquired by way of compulsory acquisition is concerned, that is an undisputed position. The fourth condition, namely, that the income arising out of the acquisition in relation to such transfer should have been received on or after 1.4.2004 is also an undisputed position. Thus, the Tribunal, after appreciation of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the purpose of Town Planning Scheme or the Development Plan and therefore, it was deemed to be the land needed for the public purpose within the meaning of Land Acquisition Act. 6. Possibly the entire issue had come under question because the deed of transfer of the land was signed between the SMC represented by the Director of the Town Planning and the assessee along with his family members. The proceedings under Section 77 of the BPMC Act were pending at the time of registration of sale deed for transfer of property and pending the reservation, efforts were made by the farmers and SMC to negotiate the price of land to be transferred in favour of the SMC to avoid the compulsory acquisition of the land by SMC under Sections 77 and 78. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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