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TMI Blog2013 (12) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 months from the date of purchase of the FDR was going to be expired on 31/10/2009 - Maturity date was not falling within the period relevant to the assessment year under consideration - The Assessing Officer was not justified in making the addition on the basis of notional income accrued to the assessee - Decided against Revenue. - ITA No. 216/Jodh/2013 - - - Dated:- 22-10-2013 - Shri Hari Om Maratha And Shri N. K. Saini,JJ. For the Petitioner : Shri U. C. Jain For the Respondent : Shri N.A. Joshi- D.R. ORDER Per N. K. Saini, A.M This is an appeal by the department against the order dated 06/02/2013 of ld. CIT (A), Jodhpur. The following grounds have been raised in this appeal: "Under the facts circumstance in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/- and the said land was purchased by the assessee on 04/07/2008 for a consideration of Rs. 10,00,000/-. The submissions of the assessee before the Assessing Officer was that this land being an agricultural land was not a capital asset under section 2(14) of the I.T. Act, 1961 (hereinafter referred to as "Act", in short) and the profit earned from this transaction was not taxable as capital gain. The assessee also submitted that this land was rural agricultural land situated at village Pal, which was approximately 13 kms. away from Jodhpur. 4. The Assessing Officer in order to examine the issue whether the land in question was an agricultural/rural land or was an urban land wrote letters to the Municipal Commissioner and Tehsildar Jodhpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve any intention to hold the land purchased as her investment and to carryout agricultural activities. He, therefore, did not allow the claim of the assessee under section 2(14) of the Act and made the addition of Rs. 35,00,000/-. 5. Being aggrieved, the assessee carried the matter to the learned CIT and submitted that she had purchased the agricultural land for the purpose of cultivation and to grow various types of grains, fruits and vegetables for the family without the aid of any chemical fertilizer. It was further stated that the said land was cultivated in past by the previous owners and was subject to land revenue. It was stated that the assessee treated the land as capital investment in her books of accounts and could only grow th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in question was an agricultural land and the contention of the Assessing Officer that the intention of the assessee was of profit motive was without any merit because the Assessing Officer had not given any material/evidence in support of his contention. Learned CIT(A) accordingly, deleted the addition made by the Assessing Officer. Now the department is in appeal. 7. We have considered the submissions of both the parties and carefully gone through the material available on record. In the present case, it is an admitted fact that the land in question purchased by the assessee was an agricultural land and the Khasra Girdavari revealed that it was used to cultivate the agricultural produce. This land was situated 13 kms. away from the mun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest in the return of income, the Assessing Officer made the addition of the impugned amount. 10. Being aggrieved, the assessee carried the matter to the learned CIT(A) and submitted that the interest on FDR was not accrued being 12 months did not expire as on 31/10/2009 from the date of purchase of FDR. It was further stated that since the interest on FDR was not accrued, therefore, the Assessing Officer was no justified to make the addition. Learned CIT(A) after considering the submissions of the assessee, deleted the addition. Now the department is in appeal. 11. Learned D.R. supported the order of the Assessing Officer and the learned counsel for the assessee reiterated the submissions made before the authorities below. 12. After ..... X X X X Extracts X X X X X X X X Extracts X X X X
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