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of <h1>Tribunal upholds assessee's appeal, allows exemption for Short Term Capital Gain on agricultural land.</h1> <h3>M/s Vijaya Silk House Pvt. Ltd. Versus A.C.I.T. Cir. 3 (3), Mumbai</h3> M/s Vijaya Silk House Pvt. Ltd. Versus A.C.I.T. Cir. 3 (3), Mumbai - TMI Issues:1. Condonation of delay in filing the appeal before CIT(A).2. Allowability of exemption to Short Term Capital Gain (STCG) related to agricultural land.3. Consideration of remand report by the Assessing Officer during appellate proceedings.Condonation of Delay:The appeal filed by the Revenue raised concerns about the delay of 433 days in filing the appeal before the CIT(A). The assessee explained the delay due to incorrect presumption regarding the taxability of the short term capital gain arising from the transfer of agricultural land. The written submission highlighted the lack of awareness about the exemption provision under section 10 of the Income Tax Act. The CIT(A) considered the reasonable cause for the delay and, after reviewing the case and judicial pronouncements, condoned the delay in filing the appeal.Allowability of Exemption to STCG:The main issue revolved around the exemption of Short Term Capital Gain (STCG) amounting to Rs. 53,98,220 related to agricultural land. The Revenue contended that the CIT(A) erred in allowing the exemption, citing the judgment of Hon'ble Supreme Court in a specific case. However, the CIT(A) found that the assessee's claim was in line with the law and supported by a CBDT circular emphasizing the duty of the department to assist taxpayers in securing reliefs. The assessee provided additional evidence, including a certificate from the Gram Panchayat, confirming the land's status as non-urban. The CIT(A) upheld the exemption based on the evidence and legal provisions, and the Tribunal found no grounds to interfere with this decision.Consideration of Remand Report:During the appellate proceedings, the Assessing Officer submitted a remand report stating no error in the assessment order and no addition under 'Capital Gains.' The report highlighted the option for the assessee to file a revised return if there was an error in the initial declaration. The CIT(A) reviewed this report and the additional evidence submitted by the assessee, ultimately supporting the assessee's claim for exemption based on the evidence provided. The Tribunal endorsed the CIT(A)'s decision, emphasizing the correctness of the assessee's claim and the lack of contradictory evidence from the Revenue.In conclusion, the Tribunal dismissed the appeal filed by the Revenue, upholding the decisions of the CIT(A) regarding both the condonation of delay in filing the appeal and the allowance of exemption to the Short Term Capital Gain related to agricultural land. The Tribunal found no grounds to overturn the CIT(A)'s reasoned findings and supported the assessee's position based on the legal provisions and evidence presented during the proceedings.
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