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TMI Blog2014 (10) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... s to the extent of the share of the asseessee would certainly answer the description of capital gains - However, the classification of the land as the one of agricultural in nature, exempts the assessee from the obligation to pay the capital gains tax – AO did not undertake the required amount of discussion vis-a-vis the nature of rights, which the respondent had acquired through the MOU and parted with other documents - notwithstanding the expressions used either by the assessee or by the officers and authorities under the Act, they are in relation to an item of immovable property and that property in turn is an agricultural land – thus, there was no merit in the appeal – Decided against revenue. - I.T.T.A. No. 5 of 2003 - - - Dated:- 26- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06.03.2000 bringing the sums of ₹ 23,48,500 and 7,49,780/- to tax. Aggrieved by that, the respondent filed I.T.A.No.417/Hyd/2000 before the Hyderabad Bench of the Income Tax Appellate Tribunal. Through its order, dated 27.03.2001, the Tribunal allowed the appeal and set aside the order passed by the Commissioner. Hence, this appeal by the Revenue under Section 260-A of the Act. Sri S.R.Ashok, learned senior Standing Counsel for the Department submits that the Tribunal grossly erred in reversing the order of the Commissioner. He contends that the finding recorded by the Tribunal to the effect that the respondent became the owner of the agricultural land and thereby, he is not liable to pay any tax is contrary to law. He contends tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e income to the respondent. In the ordinary parlance, an assessee would be under obligation to pay the capital gains tax, if he has effected transfer of any capital asset held by him. The Act provides for an exemption in respect of agricultural land. The Transfer of property Act recognizes certain categories of transfers viz., sale, gift and exchange, which in turn confer absolute rights in the transferee. It is only when some transactions take place vis-a-vis the immovable property that the transferee would acquire certain rights. In short, the execution of deeds of sale, gift or exchange is mandatory to result in transfer of title. However, under certain enactments, the event of transfer is said to have taken place, even though the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tural in nature, exempts the assessee from the obligation to pay the capital gains tax. In the assessment order, the Assessing Officer recorded a finding to the effect that the land was agricultural in nature. It is true that he did not undertake the required amount of discussion vis-a-vis the nature of rights, which the respondent had acquired through the MOU and parted with other documents. The fact however remains that notwithstanding the expressions used either by the assessee or by the officers and authorities under the Act, they are in relation to an item of immovable property and that property in turn is an agricultural land. Though the Tribunal expressed the view that there was no occasion for the Commissioner to exercise the pow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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