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TMI Blog2012 (12) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... ) TMI 475 - ITAT HYDERABAD] followed. - ITA No. 437/HYD/2011 - - - Dated:- 6-6-2012 - SHRI CHANDRA POOJARI, AND SMT. ASHA VIJAYARAGHAVAN, JJ. Appellant by : Shri M.S. Rao ORDER PER ASHA VIJAYARAGHAVAN, J.M.: This appeal filed by the revenue is directed against the order of the CIT(A), Vijayawada, dated 29/12/2010 for the assessment year 2007-08. 2. The facts in brief are that the assessee along with other family members sold land admeasuring 5.16 acres in Peeramcheru village, Rajendra Nagar Mandal, Ranga Reddy Dt. to M/s PBEL Property Development (India) Pvt. Ltd. for a sale consideration of Rs. 26.46 crores. In the assessment order, the AO observed that out of the 216 guntas of land, 199 guntas were relatable to nine HU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital gain taxable at Rs. 1,91,03,648/-. 4. Aggrieved by the order of the AO, the assessee carried the matter in appeal before the CIT(A) and raised the following additional ground of appeal:- The learned AO ought to have held that the property sold, which is an agricultural land situated beyond the Municipal limits of Rajendranagar, which is not notif ied for the purpose of capital gain, as not covered by the def inition of capital asset which is def ined in the section 2(14) of the IT Act. 5. The CIT(A), after considering the submissions of the assessee, held as under:- 8 ..The issue of taxability of capital gains arising out of lands situated in a revenue mandal where no notif ication of the Central Government was availa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rious grounds, inter-alia, that the CIT(A) erred in holding that the land or the capital asset in question transferred by the assessee is under Rajendra Nagar Municipality, which is not notified by the Central Government for the purpose of treating the same as capital asset as required u/s 2(14)(iii)(b) of IT Act, 1961. 6. None appeared on behalf of the respondent-assessee. However, we proceed to decide the appeal after hearing the learned DR and on merits. 7. After hearing the learned DR and perusing the record as well as the orders of the authorities below, we find that similar issue came up for consideration before this Tribunal in ITA Nos. 1024 to 1027/Hyd/2011 and 4 others in the case of Gousia Begum, Hyderabad and others, order da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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-tax Act denotes "any municipality or municipality of the District in which the land is situated". Further, capital gains arising from the transfer of agricultural land situated in municipal or other urban a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re 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. Since the issue under consideration is identical to the one decided by the Tribunal in the case of Gousia Begum (supra), respectfully following the same, we set aside the order of the CIT(A) and hold that the land transferred by the assessee is a capital asset, liable for capital gain. Hence, the grounds raised by the revenue in this reg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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