9911796707
TMI Blog2012 (8) TMI 766X X X X Extracts X X X X X X X X Extracts X X X X ..... tax on capital gains irrespective of the fact whether it falls under the limits of Rajendra Nagar Mandal or otherwise. Further, mere fact that the land in question was agricultural land cannot be a ground to claim for exemption u/s 2(14) as the land is situated within the local limits of Hyderabad Municipal Corporation, and consequently, tax leviable u/s 45. Order of CIT(A) set aside and matter restored to file of CIT(A) – Decided against assessee- - ITA No.446/Hyd/2011 - - - Dated:- 8-6-2012 - SHRI CHANDRA POOJARI, AND SMT. ASHA VIJAYARAGHAVAN, JJ. Appellant by : Shri M.S. Rao O R D E R Per Asha Vijayaraghavan, Judicial Member: This appeal filed by the Revenue is directed against the order of the CIT(A), Vijayawada ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Municipal Corporation. (v) The learned Commissioner of Income-tax(Appeals) erred in appreciating the fact that though the land or capital asset in question is situated under Rajendra Nagar Mandal, it is still well within the distance of eight kilometers form the limits of Hyderabad Municipal Corporation, which is notified by the Central Government. (vi) The Commissioner of Income-tax(Appeals) relied upon the fact that the land or capital asset in question falls within the distance of eight kilometers from limits of Rajendra Nagar Municipality, which is not notified by the Central Government, while not recognizing the fact that the land or the capital asst in question is within eight kilometers form the municipal limits of Hyderabad Muni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ionally a return in the individual capacity on 21.4.2009 declaring total income at Rs.2,11,000 in respect of the same transaction. While tax liability was denied in HUF status, in the individual return, the income declared in respect of sale transaction was shown at Rs.2,11,000 after claiming statutory deductions. 5. The assessing officer determined the assessee s share in the total land sold at 12 guntas in two different survey numbers. He further held that any capital gains arising from the transaction as assessable in the hands of the assessee in HUF capacity only after rejecting the explanation of the assessee that the land belonged to the assessee in his individual capacity. Though the assessee denied any income arising in the hands ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, like the status in which the gains should be assessed or the extent of land sold by the assessee, consequential grounds relating to exemptions under S.54B and 54F of the Act, are redundant and being academic in nature, no adjudication on those grounds is called for. 7. Aggrieved by the above order of the CIT(A), Revenue is in appeal before us, with the grounds already extracted in para 1 above. 8. We heard the Learned Departmental Representative and perused the material available on record. We find that the main issue of assessability of capital gains on the sale of land in question, is covered by the recent decision of the Tribunal in the case of Ghousia Begum and others (ITA No.1024/Hyd/2011 and seven others), wherein this Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of CIT vs. Bola Ramaiah (174 ITR 154) held that the capital gains arising out of sale of land situated within 8 KM of local limits of Hyderabad Municipality, is liable for tax on capital gains irrespective of the fact whether it falls under the limits of Rajendra Nagar Mandal or otherwise. Further, mere fact that the land in question was agricultural land cannot be a ground to claim for exemption under section 2(14) of the Act as the land is situated within the local limits of Hyderabad Municipal Corporation. Further, it was held recently by the Hon ble Punjab Haryana High Court in the case of CIT vs. Smt. Anjana Sehgal (supra) that the expression from the local limits of any municipality used in section 2(14)(iii)(b) of the Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as contemplated under S.54B of the Act, assessee is entitled for relief under S.54B of the Act. In this view of the matter, we set aside the orders of the lower authorities, and restore this issue to the file of the assessing officer for verifying whether the assessee has purchased the agricultural lands within a period of two years, so as to qualify for relief under S.54B of the Act, and accordingly re-decide this issue in accordance with law and after giving reasonable opportunity of hearing to the assessee. Grounds of the assessee on this issue are allowed for statistical purpose. Facts and circumstances of the case before us being identical, for the detailed reasons discussed by us in the above case, to which both of us are partie ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
