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the AO observed that the assessee along with other four persons/entities had sold immovable property on 16th Dec., 2011 for a consideration of Rs. 5,90,00,000. The assessee furnished the copy of sale deed dt. 13th Dec., 2011. The assessee purchased said property vide purchase deed dt. 15th April, 2010. Accordingly, computed short-term capital gain of Rs. 87,81,842 (Rs. 99,36,842-Rs. 11,55,000) vide its order dt. 30th March, 2015. The AO was of the opinion that the assessee along with M/s Balsai Facilities Services India (P) Ltd. along with three other individuals sold the property in Gat No. 830, Sanswadi which is industrial zone admeasuring 1 H 90 Aar. the assessee contended that income arising from the transfer of agricultural land is not liable to tax and under s. 45 of the Act. The agricultural land is not a capital asset. Further, if the land is more than 8KM away from Municipal Corporation the agricultural land cannot be termed as capital asset. The provision under s. 45 or s. 2(14) of the Act does not recognize the location of industrial zone and the 7/12 extract filed by the assessee clearly shows the subjected property as agricultural land prior to purchase and after the sale Authorised Representative submits that the land was situated beyond 8 KM from Dehuroad Cantonment Board and population of said locality (Sanaswadi) was less than the prescribed limit of 10,000 as per last Census. The land being an agricultural land both at the time of purchase and sale and argued that it is not at all capital asset taxable under s. 2(14) of the Act and the findings of both the lower authorities are incorrect. We note that no discussion whatsoever made by the CIT(A) in this regard and therefore in our opinion that the issue requires examination by the CIT(A) in terms of provisions under s. 2(14)(iii) of the Act.

Shanti Prime Publication Pvt. Ltd.

Sec. 45 & 2(14) of Income-tax Act, 1961— Capital gains—The assessee was an individual and engaged in the business of Manpower Supplier Services. The assessee conducts his business under the name and style of M/s Sai Associates. On examination of individual transaction statement details, the AO observed that the assessee along with other four persons/entities had sold immovable property on 16th Dec., 2011 for a consideration. The assessee furnished the copy of sale deed dt. 13th Dec., 2011. The assessee purchased said property vide purchase deed dt. 15th April, 2010. Accordingly, computed short-term capital gain vide its order dt. 30th March, 2015. The AO was of the opinion that the assessee along with M/s Balsai Facilities Services India (P) Ltd. along with three other individuals sold the property. The assessee contended before the CIT(A) in First Appellate Proceedings that income arising from the transfer of agricultural land is not liable to tax and under s. 45 of the Act.. The agricultural land was not a capital asset. Further, if the land is more than 8KM away from Municipal Corporation the agricultural land cannot be termed as capital asset. CIT(A) held on examination of record, the assessee’s name was not entry in the Revenue records and there were still the names of earlier owners were there. Therefore, it was a business asset confirmed the view of AO.In tribunal’s opinion that the issue requires examination by the CIT(A) in terms of provisions under s. 2(14)(iii) of the Act. The assessee was liberty to file all the evidences in support of his claim to show that the subjected land is beyond 8 KM from the local limits of municipality or cantonment board. Thus, appeal raised by the assessee was allowed for statistical purpose. --BALASAHEB VITTHALRAO KADAM vs. ITO.[2020] 23 ITCD Online 152 (PUNE)