TMI Blog2023 (5) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... established as agricultural land not to be treated as capital asset u/s. 2(14)(iii) of the Act, any income arising out of sale of such land whether by way of declared sale consideration or on account of on-money, would partake the character of exempt income, as the source of both the declared sale consideration and the on-money received is the same, viz., sale of agricultural land. Income derived from sale of agricultural land, which is not a capital asset, cannot be made taxable. The decisions relied upon by ld. Counsel for the assessee fully supports this view. No infirmity in the decision of ld. Commissioner (Appeals) in deleting the additions made. Decided against revenue. - ITA Nos. 822 And 823/Del/2018 - - - Dated:- 16-5-2023 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee was not confronted with the statement of his employee whereas the assessment order itself contains the relevant portion of show cause issued to the assessee confronting with the relevant statement. (5) Whether the employee of the assessee whose statement was recorded in the premises of the assessee during the course of search seizure can be termed as third party vis-a-vis affairs of the assessee. (6) The appellant craves leave to add, amend or alter any/all the grounds of appeal before or during the course of hearing of the appeal. 3. As can be seen from the grounds raised, the common dispute in both the appeals relates to deletion of addition made on account of undisclosed income, arising out of sale of land. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that the lands sold are in the nature of agricultural land located at Surajpur, Uttar Pradesh, situated beyond 8 Kilometres from the limits of Nagar Panchayat, Dadri and the population of the area is below the limit of 10 lacs. Thus, it was submitted by the assessee that the land sold is not in nature of capital asset as defined under section 2(14) of the Act. It was submitted by the assessee that since the land sold, being an agricultural land, is not in the nature of capital asset, even assuming that the assessee had received onmoney on sale of such land, such income will also be exempt from taxation, as it will partake the character of agricultural income. Assessing Officer, however, was not convinced with the submissions of assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e operation, a valuation report of the year 2004 was found, wherein the value of land was determined at a much higher value than the declared sale consideration of such land in the years 2012 to 2014. He submitted, in statement recorded u/s. 132(4) of the Act, the assessee has also accepted receipt of on-money. He submitted, the addition is based on incriminating material. Thus, he submitted, when there are clear evidences on record to indicate that the declared sale consideration is much below the fair market value, the fact that the assessee has received on-money is proved. He submitted, since the on-money received is undisclosed income, it has to be taxed differently. 7. Per contra, learned counsel appearing for the assessee submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er as declared sale consideration or on-money. As far as the location of the land sold is concerned, there is no dispute that it is in the nature of agricultural land, situated at Gata No. 44, 102, 107, 108 and 109 at Surajpur in the State of Uttar Pradesh. It is the claim of the assessee that the land is in the nature of agricultural land, as it is situated beyond 8 kilometres from the limits of Nagar Panchayat, Dadri, having a population of less than 10 lacs, hence, not coming within the purview of capital asset. 9. On a careful reading of the assessment orders, we are unable to find any observation of the Assessing Officer controverting assessee s claim regarding the nature and character of land sold. In fact, there is absolutely no o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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