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Revenue's Appeal Dismissed: Tribunal Rules Land Not Subject to Capital Gains Tax The appeal filed by the Revenue challenging the deletion of the addition of Long Term Capital Gain by the ld. CIT(Appeals) was dismissed. The Tribunal ...
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Revenue's Appeal Dismissed: Tribunal Rules Land Not Subject to Capital Gains Tax
The appeal filed by the Revenue challenging the deletion of the addition of Long Term Capital Gain by the ld. CIT(Appeals) was dismissed. The Tribunal found that the lands in question were agricultural, as evidenced by the presence of agricultural operations and being located outside municipal limits. Despite later conversion into plots and construction of a high-rise building, the Tribunal upheld the decision that the lands were not subject to capital gain tax.
Issues involved: Appeal against deletion of addition of Long Term Capital Gain by the ld. CIT(Appeals).
Issue 1: Nature of land sold and applicability of capital gain tax
- The assessee sold two properties claiming them to be agricultural lands not exigible for capital gain tax. - The A.O. considered the lands as commercial plots based on an opinion obtained from SRO, Thiruporur. - The A.O. noted the absence of Chitta, Adangal, and VAO certificate regarding the nature of the land. - Assessee produced Chitta and Adangal certificate to support the claim that the lands were agricultural. - The A.O. deputed an Inspector for spot enquiry who reported no agricultural operations in the lands for several years. - Ld. CIT(Appeals) concluded that the lands were agricultural and not subject to capital gain tax. - The Revenue contended that the lands were non-agricultural as they were later converted into plots by buyers and had a high-rise building. - The Tribunal found that the lands were outside municipal limits and agricultural operations were carried out, supporting the deletion of the addition.
Decision: The appeal filed by the Revenue was dismissed, upholding the deletion of the addition of Long Term Capital Gain by the ld. CIT(Appeals).
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