TaxTMI 
TaxTMI 
2026 (9) TMI 974
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....) dated 27-Nov-2024 for the Assessment Year 2016-17. 2. Based on specific information flagged as per Risk Management Strategy during the financial year 2015-16, it was noticed that the assessee during the relevant previous year, has sold agricultural land. The case was reopened and notice u/s 148 of the Act was issued. The assessee, in response to notice u/s 148, filed the return of income on 24.04.2023 claiming exempt income of Rs. 1,28,00,000/- on account of sale of agricultural land. Thereafter Notice u/s 142(1) of the Act was issued calling for details, followed by SCN. The AO also issued notice u/s 133(6) to Ms Vandana Gupta the purchaser of the land. In absence of any document/evidence in respect of the claimed exempt income, the A....
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.... and technical considerations are pitted against each other, the cause of substantial justice deserves to be preferred. The Hon'ble Supreme Court further emphasized that there is no presumption that delay is occasioned deliberately or on account of culpable negligence or mala fides. Accordingly, keeping in view the totality of the facts and circumstances of the case and the principles laid down by the Hon'ble Supreme Court, we are satisfied that the assessee was prevented by sufficient and reasonable cause from filing the appeal within the prescribed period. Accordingly, the delay in filing the appeal is hereby condoned and we now proceed to adjudicate the appeal on merits. 8. The assessee has raised the following grounds: 1) Gr....
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....ltural land situated beyond the prescribed municipal limits did not result in taxable income and, therefore, there was no requirement to file a return of income merely on account of such sale. It was also submitted that the additional evidences filed before Hon Tribunal proves the fact that the land sold was rural agricultural land falling outside the definition of "capital asset" under section 2(14) of the Act. It was also submitted that erroneous deduction of tax at source u/s 194IA cannot alter the nature of income. The Ld AR relied on the decision of co-ordinate Bench in Swamiappan vs DCIT (56 taxmann.com 185). He therefore prayed that the addition be deleted. 12. Per Contra the Ld DR relied on the orders of lower authorities. 13.....
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....ngs; (d) paintings; (e) sculptures; or (f) any work of art. Explanation.-For the purposes of this sub-clause, "jewellery" includes- (a) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stone, and whether or not worked or sewn into any wearing apparel; (b) precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel;] [(iii) agricultural land in India, not being land situate- (a) in any area which is comprised within the jurisdiction of a municipality (whether....
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....onment board referred to in item (a) and which has a population of more than ten lakh. Explanation.-For the purposes of this sub-clause, "population" means the population according to the last preceding census of which the relevant figures have been published before the first day of the previous year; [(iv) 6½ per cent Gold Bonds, 1977, [or 7 per cent Gold Bonds, 1980,] [or National Defence Gold Bonds, 1980,] issued by the Central Government ;] [(v) Special Bearer Bonds, 1991, issued by the Central Government ;] [(vi) Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government.] [Explanation.-For the removal of doubts, it is hereby clarified that "prope....
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....tly, the gain arising from the sale of the said rural agricultural land is not chargeable to tax as capital gains under section 45 of the Act. 20. The addition made by the Assessing Officer and sustained by the learned CIT(A) on account of the sale of the said agricultural land therefore cannot be sustained and hence deleted. 21. In the result the appeal of the assessee are allowed. Pronounced in the open court on the date mentioned on the caption page. ============= Document 1 ENGLISH TRANSLATION OF DISTANCE CERTIFICATE (ISSUED IN KANNADA) Sonnenahalli Gram Panchayat Office BHYATA POST OFFICE, HESARAGHATTA HOBLI, YELAHANKA TALUK 560089 Ref No: SO.GR.PA/ /2025-26 Date: 24-06-2025 Distance Certificate *** Shri....