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TMI Blog2013 (5) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... s on the land? [B] Whether the Appellate Tribunal is right in law and on facts in directing the Assessing Officer to grant exemption u/s 10(37) of the Act to the assessee? 2. Short question pertains to exemption under section 10(37) of the Income Tax Act, 1961. Such question arises on the following factual background. 3. For the Assessment Year 200809, the assessee filed return of income. During the scrutiny assessment, it was noticed that the assessee was owner of 1/4th of a property acquired by the State, for which under the order of the Court, an additional compensation of Rs.4,47,98,432/was paid and therefore, was entitled to 1/4th additional compensation of Rs.1,11,99,608/. The assessee contended that in view of provisions of sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed enhanced compensation. The AO taxed this compensation u/s 45(5) of the Act on the ground that the lands were situated near Gandhinagar and therefore not agricultural lands within the defintion of Section 2(14)(iii) of the Act. Assessee's contention before ld. CIT (A) was that by virtue of section 10(37) inserted by Finance Act, 2004 with effect from A.Y. 2005-06 enhanced compensation received on compulsory acquisition of urban agricultural land after 1.4.2004 was exempt from tax. It was also submitted that if the land was agricultural land and executable as per definition of capital asset, the same would have been outside the purview of section 45 and there was no need of introducing section 10(37). Ld. CIT (A) agreed with the assessee t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 and 12 extract in which the crop grown by the assessee on the lands were also mentioned. In the light of this factual position of this case, we are satisfied that assessee has fulfilled the condition as laid down for claiming exemption u/s 10(37) of the Act on enhanced compensation received by him during the year under appeal on compulsorily acquisition of urban agricultural lands, the order passed by the lower authorities are hereby set aside on this issue and the AO is directed to grant exemption as claimed by the assessee u/s 10(37) of the Act. 8. In the result, assessee's appeal is allowed." 6. Having heard the learned counsel for the Revenue and having perused the documents on record, in our opinion, the Tribunal committed no error ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in case of a land situated in the municipal area. But that the other conditions, namely of the cultivation of such land by the assessee would be crucial. 9. We cannot dispute this proposition of the Revenue. The question is can it be stated that the assessee did not fulfill such condition. We may recall that the only ground on which the CIT (Appeals) held against the assessee was that he was staying away from the agricultural land and that he was otherwise engaged in a business. In our opinion, neither of these two facts, either in isolation or cumulatively, would be sufficient to hold that such land was not being used for agricultural purposes by the assessee. The concept of personal cultivation as accepted in agricultural land tenancy la ..... X X X X Extracts X X X X X X X X Extracts X X X X
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