TaxTMI 
TaxTMI 
2019 (6) TMI 341
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....n brief are that the assessee has sold land at village Sarna, Chhindwara, MP for sum of Rs. 53,65,000/-; and out of said sale, assessee had claimed exemption of Rs. 52,15,000/- u/s 54, on account of amount deposited in the 'Long Term Capital Account'; and u/s 54F on the purchase of flat at Gurgaon. The value of property for the stamp duty purpose was determined at Rs. 78,00,000/-. The Ld. AO required the assessee to explain, as to why the long-term capital gain should not be determined at Rs. 74,13,898, considering the fact that stamp duty valuation of the property has been determined at Rs. 78,00,000/-. The assessee's main contention was that the land was an agricultural land situated in village, Sarana, district Chindwara which was having....
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....n land revenue's record. There is no change of land till that time. AO in fact has admitted in para 3.3 of his order that assessee's case falls under the provision of section 2(14) (iii)(b), which is only applicable for the agricultural land. Here the land is not situated in a particular notified area. Further, one of the earlier letters of Tehsildar was never provided to the assessee and the same has been obtained under the RTI Act. In the said letter, it was clearly stated that the land mentioned was agricultural land in the year 2012, which is now lying vacant and the said land was outside the limits of Chhindwara Municipal Council at the time of sale and also, the present population of the village is around 3000. Thereafter, AO has sent....
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....ken aerially and the Khasra and Khatauni mentioned that no agricultural activities was carried out by the assessee in the period financial year 2010-11 and 2011-12. Assessee in response has also given a detailed rebuttal which has been incorporated in the impugned order. Ld. CIT (A) first of all, after detailed reasoning has rejected the admission of additional evidence and has mainly referred and relied upon the observation of the Ld. AO made in the assessment order. 5. After hearing both the parties and on perusal of the relevant finding in the impugned order as well as material referred to before me, I find that assessee is an individual who is working as a teacher in 'Amity International School', New Delhi. She owned agricultural lan....
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.... stated that: - (a) The said Land is situated at about 2 KMs from the limits of Municipal Corporation; and (b) The Population of Chhindwara District as per 2011 Census was 20,90,922. 6. From the perusal of the second letter of Tehsildar, it is seen that, firstly, it states that the said land is 2 KM away from 'Nagar Palika Parishad', i.e., Municipal Corporation of Chhindwara. The Municipal Corporation of Chhindwara has been notified by Gazette Notification issued by Govt. Of Madhya Pradesh on 5th September 2014, that is, much after the event of sale; and within the limits of the said Municipal Corporation, the area of the land is also covered. The earlier letter of the Tehsildar on the other hand mentions that the said ....
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.... enlarged area that the agricultural land is now 2 KM away from the said limit. What is required to be seen is, whether the distance of the land from local municipal limit falls within the ambit of capital asset u/s 2((14) and the conditions laid down in clause (iii) or not. Here in this case it is evident from the record that at the time of sale the assessee's land was more than 8 KMs away from the local limits of Municipal Council. Ld. CIT(A) was thus not correct in rejecting the additional evidence which was merely corroborative in nature as supported the earlier two letters from Tehsildar obtained by the AO in his inquiry; and in order to reconcile the same, assessee has filed a certificate from the revenue authorities. To adjudicate th....