SAMSHER,HARYANA vs. ITO,WARD-3, HARYANA

6. That agriculture land owned by the assessee in municipality Rewari is outside the purview of Income-tax Act 1961 as per notification brought by CBDT dated 06.01.1994 bearing F.No.164/3/87/ITAT being more than 22 kms from it falling in the state mentioned in column 2 and municipality as mentioned in columns 3 i.e. Rewari at Sr. No.49.

The brief facts of the case are that the assessee is an 4. agriculturalist and has ancestral land at village Garhi Alawarpur, Tehsil Dharuhera, District Rewari. The assessee has not filed his return of income for A.Y.2013-14. A notice u/s 148 of the Act was issued on 21-03-2016 after taking the approval of the JCIT Rewari. In response of the notice the assessee has filed his return of income on 10-06-2016 declaring income nil and agricultural income Rs. 30210/-. A notice u/s 143(2) of the Act was issued and served upon the assessee. Again notice u/s 142(2) of the Act was issued with questionnaire. The assessment proceeding was attended by the ld AR. According to Assessing Officer it was noticed that assessee with other co- sharers had sold out a land situated at Garhi Alwalpur Dharuhera Rewari for Rs 7,18,03,125/- vide sale deed no 2145 dated 12-02-2013 where in the assessee has 0.333 share which worked out to Rs.2,39,34,375/-. The land in question is situated within 5 KM from the municipality limits of Dharuhera municipality thus the land covered in the definition of capital assets. The assessing officer after giving the deduction u/s 54 F of the Act has made the addition of Rs 1,87,59,375/-.

5. Aggrieved by the order of the assessing officer the assessee has filed the appeal before the Ld CIT(A) who vide his order dated 16-10-2019 partly allowed the appeal against which the assessee is in appeal before the Tribunal.

Section 2 (14)

“(14) "capital asset" means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include— (i) any stock-in-trade, consumable stores or raw materials held for the purposes of his business or profession; [(ii) personal effects, that is to say, movable property (including wearing apparel and furniture) held for personal use by the assessee or any member of his family dependent on him, but excludes— (a) jewellery; (b) archaeological collections; (c) drawings; (d) paintings; (e) sculptures; or (f) any work of art.

Explanation.—For the purposes of this sub-clause, "jewellery" includes— (a) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi- precious stone, and whether or not worked or sewn into any wearing apparel; (b) precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel;] [(iii) agricultural land in India, not being land situate— (a) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year ; or (b) in any area within such distance, not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in item (a), as the Central Government may, having regard to the extent of, and scope for, urbanization of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette47;]”

15. In accordance with the provisions of Section 2(14), the notification dated 06.01.1994 has been issued wherein the Municipalities and Cantonment Boards have been notified. The said notification is reproduced as under:

INCOME-TAX ACT, 1961: NOTIFICATION UNDER SECTION 2(1A)(C), PROVISO, CLAUSE (II)(B) AND SECTION 2(14)(III)(B) : URBANISATION OF AREAS

Notification No. [SO 9447] (File No. 164/3/87-ITA.I)], dated 6-1-1994 Whereas a draft notification was published by the Central Government in exercise of the powers conferred by item (B) of clause (ii) of the proviso to sub-clause (c) of clause (1A), and item (b) of sub-clause (iii) of clause (14), of section 2 of the Income-tax Act, 1961 (43 of 1961), in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii), dated February 13, 1991, under the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. S.O. 91(E), dated February 8, 1991, for specifying certain areas for the purposes of the said clauses and objections and suggestions were invited from the public within a period of 45 days from the date the copies of the Gazette of India containing such notification became available to the public; And whereas copies of the said Gazette were made available to the public on February 13, 1991; And whereas the objections and suggestions received from the public on the said draft notification have been considered by the Central Government; Now, therefore, in exercise of the powers conferred by item (B) of clause (ii) of the proviso to sub-clause (c) of clause (1A) and item (b) of sub-clause (iii) of clause (14) of section 2 of the Income-tax Act, 1961 (43 of 1961), and in supersession of the notification of the Government of India in the erstwhile Ministry of Finance (Department of Revenue and Insurance) No. S.O. 77(E), dated February 6, 1973, the Central Government having regard to the extent of, and scope for urbanization of the areas concerned and other relevant considerations, hereby specifies the areas shown in column (4) of the schedule hereto annexed and falling outside the local limits of municipality or cantonment board, as the case may be, shown in the corresponding entry in column (3) thereof and against the State or Union Territory shown in column (2) thereof for the purposes of the above mentioned provision of the Income-tax Act, 1961 (43 of 1961).

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1.Ambala Areas up to a distance of 8 kms from the outer Cantonment 9. Haryana limits in all directions. Board/Municipal Committee. Areas up So a distance of 8 kms from the 2. Ambala City municipal limns in all directions.

3. Assandh Areas up to a distance of 2 kms from the (Distt. Karnal) municipal limits in till directions.

7. Bawani Khera Areas up to a distance of 5 kms. from the (Distt. Bhiwani) municipal limits in all directions. Areas up to a distance of 5 kms. from the 8. Bhiwani municipal limits in all directions.

9. Charkhi Dadri Areas up to a distance of 2 kms. from the (Distt. Bhiwani) municipal limits in all directions 10. Chika Areas up to a distance of 2 Kms. from the (Gulla) (Distt. municipal limits in all directions. Kurukshetra) 11. Debawali Areas up to a distance of 5 kms. from the (Distt. municipal limits in all directions Mohindergarh) 12. Daruhera Areas up to a distance of 5 kms. from the (Distt. municipal committee in all directions Mohindergarh) 13. Ellanbad Areas up to a distance of 2 kms. from the (Distt. Sirsa) municipal limits in all directions. Areas up to a distance of 8 kms. from the 14. Faridabad municipal limits in all directions.

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Explanation 1. (1) In this notification, “Municipality” shall mean any areas which is comprised within the jurisdiction of a municipality, (whether known as a municipality, municipal corporation, notified areas committee, town areas committee, town committee or by any other name) which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year. (2) The reference to municipal limits or the limit of Cantonment Board in the schedule to this notification is to the limits as existing on the date on which the limits as existing on the date on which the notification is published in the Official Gazette.”

16. On going through the notification, we find that in the State of Haryana mentioned at Serial No. 9 in the Column 1, the Municipality of “Daruhera” of District Mohindergarh has been mentioned at Serial No. 12 in Column 3.

Order pronounced in the open court on 28.11.2024.