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Facts
The assessee sold agricultural land and received Rs. 50,00,000/-. The AO added this amount to the income, treating it as non-agricultural land based on its proximity to the city limits (4.7 Kms). The assessee contended the distance was more than 8 kms at the time of sale and that the land was agricultural.
Held
The Tribunal held that while Google map distance may not be the best evidence, the assessee also failed to provide revenue or municipal records to prove the land was agricultural. The land's situation was not established to fall within the exception for agricultural land under Section 2(14)(iii)(b) of the Act.
Key Issues
Whether the land sold by the assessee was agricultural or non-agricultural, considering its distance from the city limits and the available evidence.
Sections Cited
143(3), 148, 2(14)(iii)(b)
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Income Tax Appellate Tribunal, DELHI BENCHES: E : NEW DELHI
Before: SHRI S. RIFAUR RAHMAN & SHRI ANUBHAV SHARMA
ORDER
PER ANUBHAV SHARMA, JM:
This appeal is preferred by the assessee against the order dated 31.01.2023 of the Commissioner of Income-tax (Appeals), NFAC, Delhi (hereinafter referred to as the ld. First Appellate Authority or ‘the Ld. FAA’ for short) in Appeal No.CIT(A), Gurgaon-1/11355/2019-20 arising out of the appeal before it against the order dated 13.12.2019 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the ITO, Ward-3(1), Gurgaon (hereinafter referred to as the Ld. AO).
At the time of hearing, none appeared for the assessee. Notices have been repeatedly issued. The record shows ever since the institution of the appeal, none has appeared. No more opportunity is justified. The arguments of the ld. DR were heard.
The return of income was filed on 26.09.2012 declaring income of Rs.5,56,600/-. Notice u/s 148 of Act was issued on the ground that the assessee deposited cash of Rs. 30,95,000/- into his bank account. During the year the assessee sold his agricultural land situated at V.Fazilpur Badli Farukh Nagar, Gurgaon for Rs. 50,00,000/-. The same amount was added to income while completing the assessment u/s 148/143(3) of the Act stating that the same is not agricultural land as it is situated at a distance of 4.7 Kms from the local limits of the city.
It was submitted during assessment proceedings that the land in question is not a capital asset as on the date of sale it was situated at a distance of more than 8 kms from the local limits of the municipality but the learned AO did not accept the same stating that the distant is 4.7 kms. Case of assesse is that the learned CIT (A) did not appreciate the fact that the distance is to be considered on the date of sale of agricultural land and not on the date of completing assessment neither did he consider other submissions made by the assessee about investment made by him in purchase of residential house against sale of said agricultural land.
The assessee has taken the following grounds:- “
1. On the basis of facts & circumstances of the case there is no legal warrant or valid justification on the part of learned AO to issue notice u/s 148 of the Act and on the part of learned CIT (A) to confirm the action of the AO . The action of the AO & CIT (A) is totally unlawful unjustified and unreasonable . The assessment completed u/s 143(3) on the basis of the same also deserves to be cancelled.
2. On the basis of facts & circumstances of the case there is no legal warrant or valid justification on the part of learned AO to treat the amount of Rs. 50,00,000/- received on account of sale of agricultural land as income for the year and on the part of learned CIT (A) in not properly considering the submissions made before him during appellate proceedings. The action of the AO & CIT (A) is totally unlawful unjustified and unreasonable. The same deserves to be cancelled , if not so then suitably amended. The assessee craves right to add/amend the grounds of appeal.”
6. We find that the ld. AO has primarily relied the Google map distance for making a conclusion that the subject land is non-agricultural land and the same has been sustained by the ld.CIT(A). Though the same cannot be said to be the best evidence, however, the assessee has also failed to submit anything in the form of revenue or municipal record to submit that the subject land was agricultural land. The land is situated in Village Fazilpur Badli, Farukh Nagar, Gurgaon. A copy of the sale deed is available on record which although mention the sale is outside the Municipal Corporation area, but, for the purpose of section 2(14)(iii)(b) of the Act, it is not established to be falling in the 3