https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=766578 https://www.taxtmi.com/caselaws?id=766578 Rectification u/s 254 - sale of non-agriculture land and the valuation for capital gains tax purposes - nature of land was converted from agriculture to non-agriculture - revenue argued that the Tribunal had erred in not considering that the land sold by the assessee was a capital asset and should have attracted capital gains tax - CIT(A) while confirming the action of AO confined his finding only on the distance of location of land by referring CBDT Circular No. 03/2014 dated 21.01.2014 and held that shortest possible route has to be taken as crow flies. HELD THAT:- We find that case of assessee is that assessee is an agriculturist and sold her land situated Ubhrat, Dist Navsari. The assessee set up his case that the land is situated eight kilometres beyond city limit and is not a capital asset, thus consideration receipt on sale thereof is not chargeable to tax. This Tribunal after considering the contention of both parties, restore the matter back to the file of AO to examine the distance of land from municipal limit on the basis of subsequent CBDT Circular No.17/2015. So far as specific contention of revenue in its MA that the nature of land was converted from agriculture to non-agriculture is concern, it is settled position of law that in State of Gujarat, the agriculturist is debarred from selling of his land to non-agriculturist, or for other than agriculture purpose, and if in case the purchaser is not agriculturist, or the land is being transferred for other than agriculture purpose, the permissions of revenue authorities are required, but it will not change the character of land in the hand of seller (agriculturist). Even, the Hon ble jurisdictional High Court including a leading decision in the case of CIT vs. Siddharth J. Desai [ 1981 (9) TMI 48 - GUJARAT HIGH COURT] held that when the assessee sold agricultural land and permission was granted under section 63 of the Bombay Tenancy Agricultural Lands,1960 for using it for residential purpose, the land continued to be agricultural land till the date of sale. The permission was obtained prior to sale as it was necessary only because land was agricultural land and it was governed by provisions of Bombay Tenancy Agricultural Lands Act. It was held that mere such permission was obtained does not mean that land cease to be agricultural land used. Thus, the sole controversy in the order impugned before Tribunal was with regard to distance of location of land and the manner of measuring it, either by road distance or by aerial view. The revenue is now seeking review of the order which is beyond the scope of provisions of section 254(2) as has been held in case of Vrundavan Ginning and Oil Mills [ 2021 (3) TMI 905 - GUJARAT HIGH COURT] . Thus, we do not find any merit of in this Miscellaneous Application and the same is dismissed. Case-Laws Income Tax Wed, 08 Jan 2025 00:00:00 +0530