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TMI Blog2015 (12) TMI 824X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate proceedings, assessee filed a copy of certificate from "Group Gram Panchayat, Ambhai-Amgaon certified by Gram Sevak and Sarpanch, which suggested that the land is not situated in area, which is comprised within the jurisdiction of a municipality or a cantonment board and which has a population of not less than ten thousand or in any area within such distance, not being more than eight kilometer from the local limits of any municipality or cantonment board. This fact has not been disputed before us on behalf of Revenue. Taking note of all the facts available on record, the CIT(A) found the assessee’s claim proper and appropriate in accordance with the provisions of law and accordingly allowed the same. There is nothing brought on record by the Revenue against this factual finding of the CIT(A) allowing the exemption to the short term capital gain disclosed by the assessee in the return of income on the ground that subject matter of STCG was agricultural land as defined u/s 2(14) of the Act. - Decided against revenue - I.T.A. No.4806/Mum/2012 - - - Dated:- 30-9-2015 - SHRI SHAILENDRA KUMAR YADAV, JM AND SHRI RAMIT KOCHAR, AM For The Appellant by Shri Rajesh Ranjan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h delay. The facts of the case are that the assessment u/s 143 (3) was completed on 08-06-2009 wherein the short term capital gain of ₹ 53,98,220/- (i.e. profit on transfer of agricultural land) was charged to tax on the basis of the income declared by assessee. But the land which was the subject matter of transfer was agricultural land and being an agricultural land the asset can not be termed as capital asset as defined section 2(14) and hence the profit on transfer of such land cannot be charged as capital gain. Because of the wrong presumption about the chargeability of tax on this land (ignoring the fact that the land is agricultural land) the income was declared in the return of income and even during the course of assessment proceedings or till the time assessment completed, this mistake could not be rectified due to the ignorance of the facts and legal provisions. It was during the course of appellate proceedings of one of the relative of director the portion of the profit on the aforesaid land was charged to tax by their assessing officer and during the course of appellate proceedings when the matter was referred to the another counsel, it was noticed by them t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee had wrongly offered an income to tax in its return of income it had the option of filing a revised return. The maxim Ignorance Facti excusat, Ignorantia Juris non excusat states that ignorance of law cannot be held as an excuse and in the present case there was no ignorance of fact. Without prejudice to the above, it is contended that the assessee vide its letter dated 25. 05.2009 submitted details and computation of STCG while copies of sale agreement pertaining to the land at Amgaon (claimed sale value ₹ 2 crore and Lonavala (claimed sale value ₹ 14 lakhs) were already submitted before the A.O. on 16.03.2009. Clause l(n) of the copy of the deed of sale/or the Amgaon land clearly mentions That the purchaser will have to obtain necessary permission for any other purpose/use of the land than agricultural . The Deed of conveyance submitted for the Lonawala Plot on page 10 that the Vendor shall also get the share certificate issued by the Summer Hill Plot Owners Co-Operative Housing Society Ltd. in the name of Vijay Silk House bearing certificate No. 50 comprising of 5 shares being distinctive nos. 246 to 250 (both inclusive) in respect of plot No. 4, Survey N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of the case and also taking note of judicial pronouncements, the CIT(A) condoned the delay in filing of appeal by the assessee. 6. This reasoned finding of CIT(A) on point of condonation needs no interference from our side. We uphold the same. 7. On merits, the issue is with regard to allowability of exemption to the short term capital gain of ₹ 53,98,220/-. In appeal, CIT(A) after having considered the submission as well as the case laws cited by the assessee, granted relief to the assessee and the same has been opposed by the Revenue in its further appeal. The ld. D.R. submitted that the CIT(A) erred in allowing capital exemption to the short term capital gain of ₹ 53,98,220/- disclosed by the assessee in the return of income and prayed that the order of the CIT(A) be set aside and that of the order of Assessing Officer be restored. On the other hand, the ld. Authorised Representative supported the order of the CIT(A). 8. We have considered the rival submission and perused the material available on record, we find that the assessee was not aware of this fact that the sale proceeds arised out of sale of an agricultural land is exempt from tax u/s 10 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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