TaxTMI 
TaxTMI 
2025 (5) TMI 1953
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.... "1. The order passed by the Ld. CIT(A) is against law, equity & justice. 2. The Ld. CIT(A) has erred in law and on facts in upholding the action of Ld. A.O. in not considering request of reference to the DVO. 3. The Ld. CIT(A) has erred in law and facts in upholding the addition made U/S 56(2)(x) of the Act for Rs. 72,90,880/- by the Ld. A.O. in respect of purchase of rural agricultural land. 4. The appellant Craves liberty to add, amend, alter or modify all or any grounds of appeal before final hearing." 3. The brief facts of the case are that the assessee filed the income tax return on 30.08.2018, declaring a loss of Rs. 1,24,010/- for the Assessment Year 2018-19. Subsequently, the case was selected for 'Limited Scrutiny'....
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....tus depends on actual use and intention, and not merely on classification in revenue records. Since the land was not used for agricultural purposes and was bought with a clear intention to convert it, it qualified as a capital asset. Accordingly, the officer held that the provisions of section 56(2)(x) of the Act were attracted, and the difference of Rs. 72,90,880/- between the purchase consideration and the stamp duty value was liable to be taxed as "income from other sources". 4. In appeal, CIT(Appeals) dismissed the appeal of the assessee with the following observations: "6.1.1 Now, before me in the appellate proceedings, the appellant has argued that the land purchased is an agricultural land. The appellant has filed the deed or purc....
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.....08.2020 and 19.04.2021, copies of which are placed in the Paper Book, and had specifically requested that the matter be referred to the DVO. The Counsel for the assessee submitted that the addition made without such reference renders the assessment order void and legally untenable. In support, reliance was placed on the decision of the Hon'ble Calcutta High Court in Sunil Kumar Agarwal v. CIT (372 ITR 83), which held that the AO, acting in a quasi-judicial capacity, is duty-bound to fairly offer the assessee an opportunity to opt for DVO valuation under section 50C, even if not specifically requested. Similarly, the ITAT Ahmedabad in Amarshiv Construction Pvt. Ltd. v. DCIT (ITA No. 3061/Ahd/2015) held that where the assessee disputes the s....
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....sideration, the stamp duty value of such property as exceeds such consideration, if the amount of such excess is more than the higher of the following amounts, namely:- (i) the amount of fifty thousand rupees; and (ii) the amount equal to five per cent of the consideration:] Provided that where the date of agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of agreement may be taken for the purposes of this sub-clause : Provided further that the provisions of the first proviso shall apply only in a case where the amount of consideration referred to therein, or a part thereof, has been paid by way of an account payee cheque....
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....uld, in our view, include any rural agricultural land, in absence of any specific exclusion in section 56(2)(x) of the Act. Notably, section 56(2)(x) of the Act does not use the word "capital asset". The sale of rural agricultural land is exempt in the hands of the seller since the word "capital asset" has been specifically defined to exclude agricultural land in rural areas under section 2 clause 14. Thus, sale of rural agricultural land shall not give rise to any capital gains in the hands of the seller as it is not considered as a capital asset itself. However, from the point of view of the "purchaser" of immovable property, as stated above, section 56(2)(x) mentions "any immovable property" which going by the plain words of the Statute,....