The assessee claimed exemption from long-term capital gains tax ...

Agricultural land sale: Proper inquiry on distance from municipal limits ignored, inviting tax exemption denial.

Case Laws Income Tax

November 13, 2024

The assessee claimed exemption from long-term capital gains tax on the sale of agricultural land situated beyond the prescribed distance from municipal limits. The Assessing Officer (AO) accepted the assessee's claim without proper inquiry or verification from relevant authorities like the District Town Planner (DTP). The Principal Commissioner of Income Tax (PCIT) invoked Section 263, holding the AO's order erroneous as it lacked inquiry and application of mind. The High Court upheld the PCIT's order, observing that the AO failed to conduct any inquiry to verify the land's agricultural status and distance from municipal limits. The AO relied solely on a self-serving statement from the assessee without corroborating evidence. The Court ruled that the AO's order was erroneous and prejudicial to revenue interests due to lack of effective inquiry and non-application of mind, justifying revision u/s 263.

View Source

← Previous Next →

The assessee claimed exemption from long-term capital gains tax ...

Agricultural land sale: Proper inquiry on distance from municipal limits ignored, inviting tax exemption denial.

Case Laws Income Tax

November 13, 2024

You may also like:

LTCG on sale of agricultural land - Nature of land sold - As the question of distance of the land sold from the outer limit of the Municipal Corporation and other 13...

The assessee sold agricultural land during the year which the Assessing Officer (AO) treated as a capital asset, leading to levy of long-term capital gains tax. The...

Agricultural land which is beyond 8 Kms from municipal limits is not a capital asset - AT

The Appellate Tribunal addressed the issue of Long-Term Capital Gains (LTCG) on the sale of agricultural land, focusing on the property's location in relation to...

Capital gain on sale of land - Nature of land sold - agricultural land - calculation of shortest route - , although there is no doubt that conflicting reports were...

Computation of distance of the agricultural land from the municipal limits - the argument of the Revenue that the distance of land should be measured by the method of...

Assessment of capital gains on sale of agricultural land or landed property - the assessee’s case clearly falls under clause (b)(ii) to provisions of section 2(14)(iii)...

LTCG - capital assets OR agricultural land - at the time of sale the assessee’s land was more than 8 KMs away from the local limits of Municipal Council - assessee’s...

Addition being long term capital gain on sale of land - Once the area is within 8 kms from the Municipal limits, then even if the particular land is beyond that distance...

Capital gain - nature of land sold - capital asset v/s agricultural land - whether the agricultural land sold by the assessee or his HUF is a ‘capital asset’? - land...

Nature of land sold - Agricultural land - the land in question of the assessee was situated beyond 8 KM from the municipal limits of Jaipur and was being used for...

Capital gain - Nature of land - Sale of agricultural land – There is no requirement in any Act more especially the I.T. Act that only the self-cultivated land will be...

Addition of undisclosed income arising out of sale of land - on-money - Once, nature and character of land sold is established as agricultural land not to be treated as...

Deduction u/s 54B - reinvestment of the sale proceeds of the agricultural land - The fact that the agricultural lands were situated within the 8 kilometres from the...

The land which was within the municipal limits, could not have been treated to be ''agricultural land' on the basis of revenue record prepared under U.P. Z.A. & L.R. Act....

Quick Updates: