2023 (10) TMI 1054

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.... nature and distance of agricultural land at the time of making assessment. 3. Because the assessee filed the certificate of Tehsildar in respect of land at Karmana village who verified that this land is situated beyond 8 km. from Municipal limit. Thereafter the AO completed the assessment and exempted the capital gain and sale of mud as agricultural land and its income as exempt. 4. Because the order passed u/s 263 while the learned Principal Commissioner of Income Tax without giving proper opportunity to the assessee for hearing. 5. Because the Tehsildar is the final authority in land revenue and has issued the certificate of land which is situated beyond 8 Km. cannot be rejected rightly. The CIT administration wrongly rejected the ....

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....is land and agricultural was being done on this land. The cost of this land is debited in the book of accounts was Rs. 21,60,521 as opening balance acquired more than 3 years back and it was sold for Rs. 23.00 lakhs, resulting into capital gain of Rs. 1,39,749/-. There is also sold the mud/ soil of this land to make the land fertile and the level of land so as to get the maximum price of the sale of agricultural land. The assessee declared this income of Rs. 3,96,653/- as the capital gain from the sale if mud of agricultural land and Rs. 1,39,749 from the sale of land totaling to Rs. 5,36,402/- and not Rs. 5,36,653/- as shown in the notice, as it appears, this is to be clerical error. The assessee claimed the income of the sale proceed of l....

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....O. However, he noted that in the assessment record, a copy of letter addressed to Tehsildar, Agra Tehsil, Agra vide which a certificate was sought by the assessee is available. On the said application, there was a note which stated that the village Karmana does not fall within the municipal limits at Agra and the land under question is approximately 8 kms. away from the municipal limit. However, ld. PCIT noted that a note cannot be treated as certificate issued and needs further verification. He proceeded to do some internet search and was of the opinion that Karmana village in Agra district is located less than 3 kms. from the Taj Mahal. In these circumstances, he set aside the assessment order and the matter is restored back to the file o....