TaxTMI 
TaxTMI 
2025 (7) TMI 246
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....einafter referred to as 'the Act') for Assessment Year 2018- 19. 2 At the time of hearing, none appeared for the assessee though hearing notices have been sent through registered email id as brought on record before the Tribunal. As there is no appearance from the assessee's side, the submissions of the Ld. Sr. DR are recorded, the documents and materials including written submissions and paper book filed by assessee are perused and the matter is taken as heard. 3 The appeal is time barred by 44 days. An application dated 09.01.2023 requesting condonation of delay perused and even Learned DR has not seriously disputed the delay aspect. Thus, delay of 44 days in filing the instant appeal is condoned. 4. In the instant appeal two....
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.... of loan received by assessee, thus the source of loan advanced by assessee is also not proved. Apart thereof Ld. AO has also show caused as to why Rs. 3,94,36,125/ representing profit on sale of land claimed as exempt on account that the land is agricultural land, should not be treated as Long Term Capital Gain and added to the total income of the assessee u/s 45 of the Act. In response thereto in support of the stand of assessee, he placed reliance upon sale deed itself, certificate dated 10.02.2021 issued by Tehsildar and khasra khatauni of land under consideration, however learned AO, being not impressed with the reply of assessee, has held that the profit on sale of land as Long Term Capital Gain and added to the total income u/s 45 of....
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....m for any source of income, and the assessee offers no explanation about the nature and source of the investments or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the value of the investments may be deemed to be the income of the assessee of such financial year." 8. From perusal of provisions of section 69 of the Act, it is evident that provisions of section 69 of the Act applies where in the financial year immediately preceding the assessment year the assessee has made investments which are not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of the investments or the explanation offered....
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.... the asset sold was not a capital asset under section 2(14)(iii) of the Act which as per the show cause notice remained unsubstantiated. This is not factually correct as the copies of the sale deed already submitted show the status of land sold as agricultural land. The other ground taken for this adverse action is that the assessee has not disclosed the surplus on sale of the asset in the return of income filed u/s 139(9) of IT Act. In this connection, our most humble submission is that the asset sold in the present case is the agriculture land at Village Raliawas, District Rweari Haryana for a sale consideration of Rs 8,21,87,500/- on which there was surplus of Rs 3,94,36, 125/- The particular land is an agricultural land which f....
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....such land is outside the ambit of taxation as sale of asset other than capital asset is not exigible to tax sir. Coming to the non-disclosure of profit from sale of such land in the return filed u/s 139(9) of IT Act, it is submitted that as explained hereinbefore since the profit form above transaction is tax neutral the assessee is not under obligation to declare profit/loss from such transaction sir." 9.1 However, the Ld. AO in absence of rebutting the aforesaid evidence placed on record, has made the addition by holding as under: "5.3.1 The assessee was aware of both the issues right from the day the case was selected for scrutiny wherein, a notice u/s. 143(2) of the I.T. Act dated 22.09.2019 was issued to him as under: ....
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....arent that the land was commercial in nature and not eligible for exemption as profit on sale of agricultural land. iv. Moreover, the assessee has not claimed any exempt income on sale of agricultural land in the return of income filed under section 139(9) of the I.T. Act. 5.5 In view of the above, the profit on sale of land of Rs. 3,94,36,125/- is treated as Long Term Capital Gain and added to the total income under section 45 of the I.T. Act..." 9.2 The limited issue for our consideration is whether the land sold, is capital asset as held by lower authorities or otherwise as claimed by appellant. From perusal of order of assessment, more specifically para 5.4 of order (supra), it is clear that Ld. AO instead of analys....