TaxTMI 
TaxTMI 
2018 (8) TMI 1543
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....rising out of the order u/s 143(3) of the Income Tax Act framed by the ITO-2(5), Indore dated 25.3.2015. 2. Briefly stated facts as culled out from the records are that the assessee is an individual engaged in the business of civil construction declaring his income u/s 44AD of the Act. Income of Rs. 5,36,450/- declared in the e-return filed on 05.01.2013. Case picked up for scrutiny and necessary notices u/s 143(2) and 142(1) of the Act issued and details called for examining by the Ld.A.O. The Ld. A.O while scrutinizing the documents observed that the assessee has sold land at Gram Rau for consideration of Rs. 5,92,98,311/- but has not disclosed this transaction of sale consideration treating the impugned land as agriculture land not fo....
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....tural justice. (ii) Whether the Ld.CIT(A) was justified in facts and circumstances of the case in deleting the addition of Rs. 23672792/- which was based on enquiries as mentioned in assessment order. Asessee's Cross Objections. "That On the facts and in the circumstances of the case and in law the Ld.CIT(A) erred in not deciding the grounds no.3&4 on merits, these grounds reads as under:- "3."That On the facts and in the circumstances of the case and in law the Ld.AO erred in allowing the deduction u/s 54B of Rs. 3,56,25,519/- as against Rs. 5,46,45,798/- as claimed by the appellant and thereby computed the taxable long term capital gain on sales of agricultural land at Rs. 2,36,72,792/-. 4. That On the ....
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.... from Income Tax. Ld. Counsel further relied the findings of Ld. CIT(A). 7. We have heard rival contentions and perused the records placed before us. The only issue raised by the revenue is whether the impugned agriculture land situated at Rau sold by the assessee is forming part of Capital asset or not. From sale of the impugned agriculture land situated at village Rau (M.P) long term capital gain of Rs. 2,36,72,792/- was computed by the assessee. It is contended through out the proceedings before the lower authorities and before us that the impugned agriculture land is not a capital asset and is not liable to be taxed as per the Notification No.9447 dated 6.1.94. The agriculture land situated at Rau being 1.5 to 2 km away from A.B Road....
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....013 the same Patwari, Shri Sharad Chandra Sharma certified that the land is situated more than 5 kms from the Municipal Limit of Village Rau and the said land is situated 1.5 to 2 kms from the Agra Bombay Road (A.B. road). This certificate was filed by the appellant in the assessment proceedings. The appellant also submitted before the Assessing Officer a certificate issued by the additional Tehsildar, Tehsil Indore being No.775/Revenue-4/13 dated 19.03.2013 stating that the land of the appellant is 5 kms away from the Municipal limit of Village Rau. 4.4 In view of the contradictory certificates issued by the appropriate Land Revenue Authorities on this issue, a letter was issued to the Patwari, Shri Sharad Chandra Sharma calling f....
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.... reads as under:- "21. Rau: Area falling within 1 km on either side of AB Road upto a distance of 8 kms from the Municipal limit of Rau" 4.6.1 The appellant's land is clearly not falling within 1 km on either side of A.B Road upto a distance of 8 kms from the Municipal limit of Rau and as per the letter dated 25/10/2016 of the Patwari Shri Sharad Chandra Sharma it is also outside the Municipal limits of Rau. Thus, in view of the said notification the appellant's land is not a capital asset in terms of section 2(14)(iii). In view of the above it is held that the agricultural land sold by the appellant is not liable for capital gain tax because the same does not constitute as capital assets in accordance with provis....