9911796707
TMI Blog2023 (3) TMI 820X X X X Extracts X X X X X X X X Extracts X X X X ..... learned CIT(A) ought to have held that the action of reopening is without jurisdiction and not permissible either in law or on facts. 2. The learned CIT(A) has erred both in law and on the facts of the case in confirming that the land is a capital asset u/s.2(14) of the Act despite land being situated beyond the prescribed limits from the local limits of the Bhavnagar Municipal Corporation and being non-agricultural land as on date of agreement to sell. 3. The learned CIT(A) has erred both in law and on the facts of the case in not following a binding order of the Income Tax Appellate Tribunal, Ahmedabad Bench. 4. The learned CIT(A) has erred both in law and on the facts of the case in confirming Assessment Order which was passed desp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declaring total income at Rs.2,43,398/- and the return was processed under Section 143(1) of the Income Tax Act, 1961. The Assessing Officer observed that the assessee sold immovable property for Rs.7,73,020/- vide registered sale deed dated 11.10.2011 as against the stamp duty value of Rs,.63,93,600/- under Section 50C of the Act. The assessee filed return of income for Assessment Year (A.Y.) 2012-13 in which capital gain/income from dealing with the property in question was not found. Notice under Section 148 of the Act was issued on 05.06.2014 and served upon the assessee. In response thereto, the assessee filed return of income declaring capital loss from the sale of the property on 05.06.2014. Thereafter, the case was selected for com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the report of DVO determining fair market value of the land in question. As per DVO's report, fair market value of the land in question was Rs.45,72,000./- and the Assessing Officer passed order under Section 154 adopting the said fair market value as against fair market value adopted while framing assessment. The Ld. AR submitted that Section 50C is not applicable since the land in question, being an agricultural land, does not fall within the ambit of capital asset, as defined under Section 2(14) of the Act. In order to invoke provisions of Section 50C, the essential pre-requisite is that the underlying asset must be a capital asset. The land in question is situated at Village Nesda which is located at a distance of almost 19 kilometres f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the newly inserted proviso to Section 50C vide Finance Act, 2016. The assessee entered into two agreement to ale on 27.09.2010 for sale of two pieces of the land in question and the consideration was determined at Rs.3,90,520/- and Rs.3,82,500/- respectively. Part consideration of Rs.1,50,000/- (in both the cases) was received through account payee cheque. Such agreement to sale were executed at the then prevailing Jantri rates. The Ld. AR submitted that the agreement to sale were executed on 27.09.2010 and registered on 27.09.2010. Part payment has been received by account payee cheque and sale consideration as on the date of execution of agreement to sale was at the prevailing Jantri Rates. These facts were undisputed by the revenue as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which thereafter rectified at Rs.45,72,000/- as adopted by the DVO. 11. Heard both the parties and perused all the relevant material available on record. As regards to ground nos.2 to 5, it is pertinent to note that the land which was sold by the assessee was agricultural land. But the said property was sold to M/s. Inducto Cast Private Limited vide two separate registered agreement dated 27.09.2010 mentioning that it was a sale agreement for sale of non-irrigated agricultural land and the sale deed was finalised for a consideration of Rs.3,90,520/- and Rs.3,82,500/-. Advance payment of Rs.1,50,000/- each was received by the assessee by account payee cheque and the rest was to be received after the conversion of the said land into non-agri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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