AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (7) TMI 887
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....n law, The Ld. CIT(A) erred in confirming the long term capital gain of Rs.1,30,91,195/- for sale of agriculture land which was purchased on 24.06.1987." 2. The assessee revised the form No. 36 i.e. the form prescribed for filing the appeal on the ground that assessee company merged with M/s Greenboom developers and resorts Ltd by way of the order of the Hon'ble High Court dated 21/05/2016. 3. Briefly stated facts of the case are that the assessee e-filed its return of income for the year under consideration on 29/09/2013 declaring loss of Rs.24,154/-. In the return of income the assessee computed long-term capital gain on sale of land, but same was claimed as exempt on the ground that land sold was agricultural land. In the scrutiny ass....
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....,00,000/-. The appellant filed valuation report of the plot No: CTS No. 35 done by The Sub-registrar Borivali No. 5, Mumbai Suburban district (Bandra). Relying on the said government rates as per the Mumbai suburban district, the AO concluded that the property have been sold at Rs. 1,60,00,000/-. A show cause notice was issued to the appellant asking to tax the difference in consideration as capital gains, which was responded by the appellant. Since the land in question is situated in area which comprised within the jurisdiction of Bombay Municipal Corporation, the AO has taxed the long term capital gains of Rs.1,30,91,195/-." 6.1 On the other hand, the appellant submitted that the appellant purchased agricultural land at Erangal Village....
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....s not get changed from agricultural land to non agricultural land automatically. The appellant has never made any application for converting the said land as non-agriculture land than the appellant fails to understard of the stand of A.O. to treat as non agricultural land and taxing capital gain on the said land. We also rely on Gujarat high court decision in CIT V Rajsibhai Mermanbhai Odedara 22 taxman 72. 6.4 I have carefully considered the rival submissions and facts of the case. The main dispute arising is to tax the difference as LTCG. The appellant daimed that this is an agricultural land and does not attract any income tax, whereas the AO treated the said land and dwelling house as non agricultural property because the land is sit....
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....nd and was never converted to non-agricultural land and therefore assessee satisfies the definition of the agricultural land as per section 2(14)(iii) of the Act and excluded from the definition of the capital asset. 6. We have heard rival submission of the parties on the issue in dispute and perused the material on record. The issue in dispute before us is whether the land sold by the assessee was in the nature of the agricultural land exempted from the definition of the capital asset liable for long-term capital gain. One of the conditions for excluding the land from the definition of the capital asset is that said land should be agriculture land in India not being land situated within prescribed limit from the municipal Corporation as p....
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....ission was in respect of the whole or a portion of the land? If the permission was in respect of a portion of the land and if it was obtained in the past, what was the nature of the user of the said portion of the land on the material date? 6. Whether the land, on the relevant date, had ceased to be put to agricultural use? If so, whether it was put to an alternative use? Whether such cesser and/or alternative user was of a permanent or temporary nature? 7. Whether the land, though entered in Revenue records, had never been actually used for agriculture, that is, it had never been ploughed or tilled? Whether the owner meant or intended to use it for agricultural purposes? 8. Whether the land was situated in a developed area? Whethe....