The Tax Publishers2013 TaxPub(DT) 1661 (Del-HC) : (2013) 052 (I) ITCL 0543 : (2013) 215 TAXMAN 0639 : (2014) 099 DTR 0173

Income Tax Act, 1961

--Capital gains--Capital assets Agricultural land outside municipal limits--Assessee claimed capital gain from the sale proceeds of the land as exempt because the land was situated at a distance of more than 8 kms from the outer municipal limits of Gurgaon supported by the certificate issued by Tehsildar, Gurgaon and district town planner Gurgaon. Revenue had not granted exemption to assessee on account of the provisions of section 2(14)(iii) as there was possibility of a shorter distance which would be less than 8 kms. from the outer limits of the Municipal Corporation. According to Commissioner (Appeals) and Tribunal, such an apprehension on the part of assessing officer could not form the basis of denial of assessee's. Revenue however, contended that Tribunal had not gone into the issue that lands not being agricultural in nature, therefore, the conditions of section 2(14)(iii) were not satisfied. Held: Not rightly so, as assessing officer had not doubted the nature of land being for agriculture and disallowance was made merely on the ground that there was possibility of a shorter distance less than 8 kms. Moreso, Tribunal had jurisdiction to examine a question of law which 'arose from the facts as found by the Income Tax authorities' and which had a bearing on the tax liability of assessee. Therefore, the contention of revenue that the issue regarding land, not being agricultural in nature, could not be gone into.

Income Tax Act, 1961, Section 2(14)

IN The DELHI High Court

Badar Durrez Ahmed & Vibhu Bakhru

CIT v. Nirmal Bansal

ITA 198/2013 ITA 203/2013 ITA 204/2013 ITA 205/2013

30 April, 2013

Appellant by : Sanjiv Sabharwal

Respondent by : None

JUDGMENT

Badar Durrez Ahmed, J (Oral)

CM No. 5523/2013 in ITA No. 198/2013 CM No. 5527/2013 in ITA No. 203/2013 CM No. 5528/2013 in ITA No. 205/2013

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