2026 (2) TMI 249

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....rounds of Appeal: "1. That the Ld. CIT(A)/NFAC erred in applying Section 56(2)(vii)(b) to rural agricultural land which is excluded from 'capital asset' u/s 2(14)(iii). 2. That the Ld. CIT(A)/NFAC did not distinguish urban and rural agricultural land; the land in question is agricultural in revenue records and located outside notified municipal limits; hence exempt u/s 2(14)(iii). 3. That the Ld. CIT(A)/NFAC ought not to have upheld the action of the Assessing Officer in as much as he has not appreciated the facts of the case in its entirety and hence, the impugned addition made by the Assessing Officer is bad in law, illegal and unjustified." 3. Brief facts of the case are that the assessee did not file his re....

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....vidual receives in any previous year, from any person or persons on or after the 1st day of October, 2009 but before the 1st day of April, 2017, any immoveable property for a consideration which is less than the stamp duty value of the property by an amount exceeding fifty thousand rupees, the stamp duty value of such property as exceeds such consideration shall be income chargeable to tax under the head "Income from other sources". 6.3.5 In the instant case, the appellant has purchased agricultural land having 1.216 Hectares, Khasra No: 298 situated at Village Begumpur, Dist: Sambhal jointly with Mohd Nadeem (2/3rd) & Vikas Agarwal, the appellant ((1/3rd) from Ashok Rawal (Seller) on 24/02/2014. The sale consideration as per the s....

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....er such agriculture land falls in the definition of capital asset u/s 2(14) or whether such agriculture land is stock-in trade of the assessee, in our considered view, are issues which cannot be read in the definition of "any immoveable property" used in context of section Section 56(2)(vii)(b) and are thus not relevant." The case laws relied upon by the appellant are not considered in view of the findings of the decision of the Hon'ble ITAT in the case of Trilok Chand Sain (supra)." 3.2 With regards to the assessee's second contention that the Ld. AO should have made reference to the DVO to determine fair market value of the land, Ld. CIT(A) observed that no such request was made by the assessee before the Ld. AO. Accordingly, appeal of....

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....defines 'property' and includes 'immovable property being land or building or both' without making an exception for agricultural land. 5. We have heard the rival submissions and carefully perused the material placed on record and relevant provisions of section 2(14) & section 56 of the Act. We note that section 2(14) excludes following agricultural land from the definition of capital asset. "Section 2(14) "capital asset" means * * but does not include- * * * (iii) agricultural land in India, not being land situate- (a) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town....