TaxTMI 
TaxTMI 
2018 (7) TMI 217
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....ing that land sold by the assessee cannot be regarded as capital asset within the meaning of Section 2(14) of the I.T.Act, 1961. 2. On the facts and in the circumstances of the case, the Ld. CIT(Appeals) erred in relying on the decisions of Hon'ble Punjab and Haryana High Court in the cases of Satinderpal Singh (2010) 229 CTR (P&H) 82 and Lal Singh and others (2010) 228 CTR 575, in as much as, with due respect to the Hon'ble Court, the decision has to be considered per incarium for the reason that the Hon'ble Court did not have the benefit of going through the provisions of The General Clauses Act, 1897 which stipulates that for the purpose of any Central Act or Regulation, distance shall be measured in a straight line ....
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....le consideration of the agricultural land, the assessee has claimed the indexed cost of acquisition of Rs. 72,26,632/- the exemption u/s 54B to the tune of Rs. 55,65,598/-. 4. The Assessing Officer in the course of assessment proceedings found that, as per the Notification dated 31.08.2010 Nagpur Improvement Trust (NIT) has issued a map denoting the location of land within the boundary of 8 Kms. from the local limits of Nagpur Municipal Corporation. Thus, according to the Assessing Officer as per this Map Mouza-Peotha, where the land sold was located falls within the distance of 8 Kms. of Nagpur Municipal Corporation. The Assessing Officer, accordingly issued a letter dated 14.10.2013 to the Asst. Director, Town Planning, Nagpur to ascer....
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....rest appropriate road distance of 9.2 kms from Nagpur Octroi limits. He noted that the ld. Counsel of the assessee has also filed 7/12 extracts in support of his claim that the land in question is an agricultural land. Furthermore, in this regard, the ld. Counsel of the assessee referred to the several decisions of the ITAT on the same issue which reads as under: 1. Sanjay Nagrao Pedlewar vs. ACIT, Central Circle 2(2), Nagpur (ITA No.112/Nag./2012); 2. Nitish RAmeshchandra Chorida vs. ACIT, Central Circle 2(2), Nagpur (ITA No. 113/Nag/2012); and 3. Shaishir S. Diote vs. ACIT, Central Circle 2(2), Nagpur (ITA No. 147/Nag/2012) 6. He also noted that the tribunal has referred to the decision of Hon'ble Punjab & Ha....
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....essee." 6.9 The Hon'ble ITAT Nagpur Bench (e-Court) has further held that any consideration received out of sale of Agriculture land cannot be treated as business income or for Capital Gain. The Tribunal has held as under:- " Since this issue has already been decided by various benches of the Tribunal and the Hon'ble Bombay High Court as well as the Hon'ble Delhi High Court and the decision of the Hon'ble Delhi High Court in the case of DLF United Limited (supra), which has been confirmed by the Hon 'ble Supreme Court therefore, we hold that any consideration received out of sale of agricultural land, cannot be treated as business income for the purpose of capital gain or for the purpose of business income, w....
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.... the Act. 8. Upon the assessee's appeal, the ld. Commissioner of Income Tax (Appeals) did not agreed with the Assessing Officer. He held as under: I decline to agree with the version of the AO that to acquire a clear title, Sale Deed is mandatory. The appellant has entered into an Agreement to Sale as per the prescribed procedure of law which in my considered opinion confers absolute right, tile and interest on the buyer with such buyer has made the payment and taken possession of the property purchased in question. It is not a case of AO, that the payment has not been made by the appellant and possession not obtained. Therefore, the contention raised by the AO that to acquire the absolute interest and right to the property, the....