TaxTMI 
TaxTMI 
2019 (1) TMI 150
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....03.2015 framed by DCIT(Central)-I, Bhopal. 2. The case was called up but none appeared on behalf of the assessee. In the past also on 27.4.2018 and 10.10.2018 notices of hearing were served through departmental representative as the notice sent to the assessee was returned back un served. Even the notice of hearing to be served through the departmental representative could not be served as the premises at the addressed mentioned in the assessment order was found locked and for this reason the Inspector of the Income Tax Department affixed the notice at the assessee's premises. In the given facts it was decided to hear the revenue's appeal in the absence of assessee. 3. Revenue had raised following grounds of appeal; "On the f....
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....ct. We observe that the assessee has contended before the lower authorities that the alleged land was an agricultural land not falling under the category of capital assets as provided u/s 2(14) of the Act and the gain from the sale thereof was not liable to tax but as there was no column in the income tax return she bonafidely declared the transaction under the head capital and claimed deduction u/s 54B of the Act. Now the question before us is that whether the agricultural land measuring 5.71 hectare located at Shivangaon, Amarawati is an agricultural land and is not falling under the head 'capital assets' as defined u/s 2(14) of the Act?. 8. We find that Ld. CIT(A) deleted the addition for Long Term Capital Gain at Rs. 1,33,08,531/- ob....
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....ot a capital assets defined in section 2(14) of the Income tax act hence capital gain on such land is not attracted. For reference, Copy of certificate issued by the Gram Panchayat is enclosed herewith. Sir, it is further submitted that the assessee wants to show this transaction in her return but in return there is column for sale of capital assets only and hence the same was shown as capital assets. Since the Agricultural land is not under capital assets ,to nullify the gain arising on sale, exemption u/s 54 B coloumn was filled up so that the resultant amount of gain comes to nil" It is further submitted here that for arriving at some conclusion Ld. AO was expected to examine these basic factors given u/s 2(14) of the I....
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....her in the Constitution or in the Income-tax Act. It, therefore, must be given the meaning which it ordinarily bears in English language and as understood in ordinary parlance. The determination of the character of a particular piece of land, according to the purpose for which it is meant or set apart and can be used, is a matter which ought to be determined on the facts of each particular case. What is really required to be shown is the connection with an agricultural purpose and user and not the mere possibility of user of the land, by some possible future owner or possessor, for an agricultural purpose. It is not the mere potentiality, but its actual condition and intended user, which has to be seen. If there is neither anything....
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....res have been published before the 1st day of the previous year. This definition contemplates that in order to bring an agricultural land within the definition of a capital asset. two conditions must be satisfied: (i) The land must be situated in any area which is comprised within the jurisdiction of a municipality or cantonment board; (ii) The population of the area where the land is situated should not be less than 10,000 according to the last preceding census. In this case Appellant had already submitted uses, distance and population of the Village. We failed to understand why Ld AO has not relied on the certificate issued by the Sarpanch . Gram panchayat is very much appropriate agency for certifying ....
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..... 1,33,08,531/- and claimed deduction u/s 54B of the LT Act. 8.2 The A.O vide query letter dated 23.09.2014 asked the appellant to furnish complete details of the transaction. In response to the query the appellant filed certificate from Gram panchayat which was not accepted by the A.O. But during the appellate stage the appellant assessee first filed a sheet having Google navigation and detail of the population of the area Shivangaon (place where the said land of the appellant exists) and then the appellant assessee filed a certificate of Tehsildar of Shivengaon dated 06.03.2017. Which gives clear-cut finding that the above mentioned place is 27 km from Amravati and has total population of 2294 as per govt. record. In vie....