The Income Tax Appellate Tribunal (ITAT ) Delhi bench during the appeal proceedings observed that the lower authorities did not consider sale deeds for determining the nature of sold land as agricultural. Thus the bench directed readjudication for verifying the nature of land sold by assessee.
Assesee , Chander Mani had sold a land and he claimed it was agricultural land thus income from it was exempted. During the assessment proceedings AO noticed that the land sold was in the form of an industrial plot.
Before the AO assessee has claimed that at the time of execution of sale deed there was an agreement to sale and on the basis of agreement to sale the nature of land should be considered to be agricultural in nature.
Subsequently without considering the submission AO passed an assessment order.
Aggrieved by the order assesee filed an appeal before the CIT(A) ,who dismissed the appeal of the assessee . Thereafter the assessee filed an appeal against the CIT(A) order before the tribunal.
During the appeal proceedings before the bench no one appears before the tribunal.Thus the bench considers the written submission filed by the assessee before the bench .
In the written submission the assessee submitted that agricultural land sold in the form of industrial plot is an agricultural land and same is not liable for capital gains tax
Vivek Kumar Upadhyay, Counsel for Revenue supported the decision of the assessing officer.
It was observed by the tribunal that the CIT(A)did not consider the agreement made by the assessee for the purpose of ascertaining the nature of land being agricultural or non-agricultural.
Thus the CIT(A) concluded on the basis of sale deed that when the land was transferred its land use had been changed and it was declared to be non-agricultural land.
After considering the facts submitted and circumstance , the two member bench of N.K.Billaiya (Accountant Member ) and Anubhav Sharma, (Judicial Member) are restored to the files of ld. CIT(A) to examine the nature of land on the date of registered agreement to sale on 26.08.2008 and then ascertain whether the land sold would fall within the definition of capital asset u/s 2(14) of the Income Tax Act.
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