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TMI Blog2018 (8) TMI 1543X X X X Extracts X X X X X X X X Extracts X X X X ..... tions and was not covered under the definition of capital asset as provided in section 2(14)(iii) of the Act read with Notification No.9447 dated 6.1.1994. Therefore no interference is called for in the findings of Ld.CIT(A). Accordingly the appeal of the revenue stands dismissed. - ITA No. 26/Ind/2017, C.O. No. 01/Ind/2018 - - - Dated:- 31-7-2018 - Shri Kul Bharat, Hon ble Judicial Member And Shri Manish Borad, Hon ble Accountant Member Appellant by : Shri K. G. Goyal, Sr.DR Respondent by : Shri Prakash Jain Ms. Shreya Jain, CAs ORDER Per Shri Manish Borad, AM This appeal filed at the instance of revenue and cross objection by the assessee pertaining to Assessment Year 2012-13 is directed against the order of Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngly assessed at ₹ 2,42,09,250/- 3. Aggrieved assessee preferred appeal before the Ld.CIT(A) and partly succeeded as the Ld.CIT(A) deleted the addition of ₹ 2,36,72,792/- made by the Ld.A.O towards Long Term Capital Gain holding that the impugned land sold by the assessee does not constitute as capital asset in accordance with the provisions of section 2(14)(iii) read with Notification No.9447 dated 6.1.94. 4. Aggrieved Revenue is now in appeal before the Tribunal and assessee has filed Cross Objection raising following grounds; Revenue s appeal On the facts and in the circumstances of the case, the Ld.CIT(A) has erred in:- (i) Whether the Ld.CIT(A) was justified in deleting the addition of ₹ 2,36,72, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough this remand report Ld.A.O has mentioned that the alleged land bearing survey No.1429/1480/1 and others are about 1.5 to 2.0 km away from the municipal limit of Rau and were also situated at 1.5 to 2.0 km far from A.B.Road. Ld.Departmental Representative further relied on the findings of Ld.A.O. 6. Per contra, the Ld. Counsel for the assesee submitted referring to page-57 of the paper book which is a part of the Notification No.9447 dated 6.1.94 submitted that village Rau has been specifically mentioned in this notification and the areas falling within 1 Km on either side of A.B Road up to a distance of 8 Kms from the municipal limits of Rau only fall in the category of capital whereas the impugned land is 1.5 to 2 Km away from A.B R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Officer has made addition of Long Term Capital Gain of ₹ 2,36,72,792/- after allowing the deduction u/s 54B of the Income Tax Act. The calculation of the same is as under:- Sale consideration Rs.6,43,32,133/- Less:Indexed Cost ₹ 50,33,822/- Long Term Capital Gain Rs.5,92,98,311/- Less:Deduction u/s 54B Rs.3,56,25,519/- Addition made on account of LTCG Rs.2,36,72,792/- 4.2 In this case the DDIT (Investigation)-I, Indore had conducted an investigation regarding the sale of the above property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er no.DDIT(Investment)/I/IND/STR/13-14 dated 08/08/2013 was issued without considering the Gazette notification issued by the Government of Madhya Pradesh bearing no.665-X-VIII-II-80. As per the above notification the boundary of Municipal limit of village Rau is 158.47 acres. The Patwari Shri Sharad Chandra Sharma in his letter dated 25/10/2016 has stated that on the basis of above Gazette Notification the said land in question is situated outside the municipal limit of Village Rau at a distance of 1.5 to 2 Kms. As the letter dated 25/10/2016 has been issued by the Appropriate Authority of Govt. Department after pointing out the contradiction in the earlier letter the same is being taken into consideration and reliance is being place on it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .1994 21. Rau Areas falling within 1 km on either side of A.B road upto a distance of 8 kms from municipal limits of Rau. 10. We also find that remand report was called by our direction on 26.4.18 and the Ld.Departmental Representative has placed the report before us along with the statement of Shri Sharad Chandra Sharma who was working as Patwari of Rau during the period 2009-2014. The content of this remand report dated 28.5.18 issued by Income Tax Officer 2(5), Indore is reproduced as under; Kindly refer to your letter F.No.Sr.(DR)/ITAT/Ind/ 2018-19/8 dated 26.04.2018 on the above subject. As per your direction a summon u/s 131 of the Act was issued to Shri Sharad Chandra Sharma Patwari of Rau and his statement wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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