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TMI Blog2018 (5) TMI 744X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 07.11.2014 certifying the distance and the agricultural purpose for which the lands were put into use, copy of which along with a translated version are annexed hereto and marked as Annexure: 'I' Thus as per the above definition, the land sold being situated far beyond 8 K.M. from local limits of any municipality situated at Chinsura, Hooghly is an agricultural land and outside the ambit of the definition of capital asset We hold that the land in question is an agricultural land and we uphold the order passed by the CIT(A) on the basis of the observation made herein above. - Decided against revenue. - ITA. No. 2351/Kol//2016 - - - Dated:- 4-5-2018 - Hon ble Shri J. Sudhakar Reddy, AM And Shri S.S.Viswanethra Ravi, JM For t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovision of the income tax Act. The entire amount on sale of land to the tune of ₹ 60,12,635/- has been assessed as short term capital gain by the AO. 4. The CIT(A) while dealing with the said appeal preferred by the assessee relied upon some documents placed before him by it, asked for a remand report from the AO and upon perusal of the entire set of documents concluded that the impugned land is agricultural land and is outside the ambit of the definition of capital asset and income arising from the sale of such land cannot be termed as Short term capital gain or long term capital gain and decided the issue in favour of the assessee. Aggrieved the revenue filed this appeal on the following grounds :- 1. That Whether the Ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of its sale. During the assessment stage, the assessee failed to provide any document or evidence which reveals that there was any agricultural activities during the period in which the said land was in its possession. He further added that Khuddus Ali Molla, who was the caretaker of the land as claimed by the assessee as doing agricultural activities, was not produced by the assessee before the AO and that Shri Molla failed to furnish any accounts of agricultural activities on that particular land. 6. The ld. AR relied upon the order of CIT(A). He has taken us to the relevant documents placed before AO and CIT(A) to substantiate his arguments that the land in question is agricultural in nature. 7. We have heard the rival submissions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 36 km from the nearest municipality situated at Chinsura, Hooghly i.e. far beyond 8 km from the local limits of any municipality, a fact which is admitted by the AO in his remand report. The assessee has filed a certificate from Gurap Panchayat dated 07.11.2014 certifying the distance and the purpose for which the lands were put into use as agriculture. The AR further pointed out that one caretaker namely Md. Kuddus Molla carried out agricultural activities on that particular land and this fact was brought to the notice of the AO by a letter dated 08.03.2013. The purchase agreement as well as the sale deed, being a part of the record, shows the land as Sali which is nothing but an agricultural land as evident from Khatia. A website hosted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mean that on the date of sale the land has ceased to be agricultural land. If in the revenue record, the particular land is recorded as agricultural land and till the date of sale, it is exploited as agricultural land and the owner of the land has not taken any step to indicate his intention to exploit the land for non-agricultural purposes then such land to be regarded as agricultural land. The purpose for which such land is sold is not of much importance and weight. A close reading of section 2(l4)(iii)(a) seems to suggest that it is the population of the municipality that has to be taken into account and not the population of any area within the municipality. It may be that a municipality may comprise of many villages, wards and street a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Dhaniyakhali, about 36K.M. from the nearest municipality situated at Chinsura, Hooghly i.e. far beyond 8 K.M from the local limits of any municipality and the fact was also confirmed by the Ld. Assessing Officer from Gram Pancha at Gurap.The assessee has filed a certificate from Gurap Panchayat dated 07.11.2014 certifying the distance and the agricultural purpose for which the lands were put into use, copy of which along with a translated version are annexed hereto and marked as Annexure: 'I' Thus as per the above definition, the land sold being situated far beyond 8 K.M. from local limits of any municipality situated at Chinsura, Hooghly is an agricultural land and outside the ambit of the definition of capital asset and income ari ..... X X X X Extracts X X X X X X X X Extracts X X X X
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