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TMI Blog2015 (10) TMI 926X X X X Extracts X X X X X X X X Extracts X X X X ..... is order has given the details of the property sold by the assessees. Along with the details of agricultural land, the details of trees planted in the scheduled property is also given. The precise number of trees along with varieties is mentioned. It has been stated that 679 trees consisting of mango, teak, coconut, guava, jack, lime and sapotta are standing on the two parcels of land sold by the assessees. In view of thorough details given in the sale deed, there was no question of making any estimations by the Assessing Officer. Moreover, the Assessing Officer has not given any basis for making such estimation. Subsequently, in the remand report dt.15-05-2013, in the case of Shri S.Chokalingam, the Assessing Officer in his comments to par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the power of Assessing Officer that is limited to entertain fresh claim but does not impinge the power of the Income Tax Appellate Tribunal u/s.254 of the Act. In view of the well settled law and the facts of the case, we are of considered opinion that the claim of the assessees to treat the sale proceeds of agricultural land as exempt from tax has merit. The appeals are remitted back to the Assessing Officer to consider the revised computation filed by the assessees and thereafter, decide the issue afresh in accordance with law. - Appeals of the assessees are partly allowed for statistical purposes - IT Appeal Nos. 2222 to 2224 (Mad.) of 2013 and 449,464 & 466 (Mds.) of 2014 - - - Dated:- 24-7-2014 - Dr. O.K. Narayanan AND Vikas Awa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chase deed shows that along with new agriculture land, the assessees have purchased a plot described as house-site. The assessees had also claimed expenditure towards development of the new agriculture land. The said development charges relate to removing rocks, leveling and fencing of the land. The Assessing Officer held that the amount spent towards purchase of house-site and development charges cannot be allowed as part of investment u/s.54B. The Assessing Officer accordingly disallowed the amount of exemption claimed by the assessee to the extent of aforesaid two expenditures. The assessee in ITA No.2222/2013 has claimed exemption u/s.54F for investing in residential property. The same was denied by the Assessing Officer for the reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matrix of the case. The income generated from the sale of agriculture land falls within the ambit of section 2(1A) of the Act which defines agriculture income and is thus exempt from tax. The ld.AR further submitted that the Tahsildar of the village has confirmed the nature of land, as agriculture. Moreover, the Assessing Officer has not raised any doubt over the nature of land. Therefore, income arising from the sale of land and trees being agriculture income is exempt from tax. The ld.AR made an alternative submission that the Assessing Officer has erred in partly disallowing exemption claimed by the assessees u/s.54B. The entire investment made by the assessees should be considered for granting exemption u/s.54B. 4. Au Contraire Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion herein arises out of appeals filed by the Revenue assailing the order of CIT(Appeals). A perusal of the assessment order shows that the Assessing Officer has partly disallowed the claim of the assessee in respect of agriculture income arising from sale of standing trees. The Assessing Officer has made partial dis-allowance merely on estimation basis. No detailed survey was conducted by the Assessing Officer although he visited the site personally with one inspector. The CIT(Appeals) in his order has given the details of the property sold by the assessees. Along with the details of agricultural land, the details of trees planted in the scheduled property is also given. The precise number of trees along with varieties is mentioned. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 2(14) , agriculture land not situated within the jurisdiction of a municipality or a Cantonment Board having population of minimum ten thousand or in any area within the distance of 8 KMs from the local limits of any municipality or Cantonment Board, is not considered as capital asset. In the present case, it has not been alleged that the land of the assessee falls within the radius of 8 KMs of any municipality or Cantonment Board or having population exceeding the limit as prescribed u/s.2(14)(iii)(a) of the Act. Thus, agriculture land of the assessee is clearly outside the ambit of the term capital asset . Initially, the assessees have treated the agriculture land as capital asset and accordingly claimed exemption u/s.54B/54F o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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