SUDARSHAN WAMANMAHARAJ DEGLOORKAR,BEED vs. INCOME-TAX OFFICER,

PER D. KARUNAKARA RAO, AM :

This is the appeal filed by the assessee against the order of CIT(A)-2, Aurangabad, dated 10-02-2016 for the Assessment Year 2011-12.

the affidavit filed by the assessee, I am of the opinion that the appeal is

required to be admitted for adjudication considering the smallness of

the delay and the reasonable cause specified in the affidavit.

“On facts and in law, 1. The Ld.CIT(A) erred in confirming the addition made by the AO of Rs.3,08,000/- as income from sale of land without appreciating the facts of the case. 2. The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal.”

individual and working as a Marking Executive. Assessee filed the

return of income declaring total income of Rs.9,27,845/-. There is a

dispute about the taxability of income from sale of land and also the

interest income. During the course of assessment proceedings, the AO

found that the assessee received a sum of Rs.3,68,010/- from Vimla

Chandrakant in connection with the transaction of sale of land. The

details were called for in support of the same. In support, the assessee

filed a sale deed along with 7/12 extract evidencing the sale of land

(Gut No.69) situated at Balwad, Taluka Velhe, Dist. Pune. The

purchase value of the land is said to be Rs.60,000/- as on 12-05-

2008. Assessee claimed exempt of capital gains and held that the

same constitutes as an agricultural land located in remote area of

Balwad. As per the 7/12 extract, there was an entry regarding

growing of Rice in the said land. However, assessee did not file

supporting documents before the AO. Thus, there is no proof

whatsoever furnished by the assessee evidencing the earning of

agricultural income from the said land. Therefore, AO invoked the

provisions of sub-clause (iii)(b) of section 2(14) of the Act and

considered the same as a Non-Agricultural land before taxing the

capital gains, i.e. Rs.3,68,000 – Rs.60,000 = Rs.3,08,000/-.

evidences regarding the agricultural nature of the land and the

location of the land beyond municipal limits and also for want of

written submissions, the CIT(A) dismissed the appeal of the assessee

on this issue. Relevant lines from Para No.6 of the order of CIT(A) are

relevant and the same are extracted as under :

“6……………………….However, the assessee did not provide any evidence to show that the land was situated outside the municipal limits and he did not provide any evidence which would indicate that the land was indeed under cultivation in the years prior to its sale. The assessee has also not made any written submissions which would enable me to make any enquiry or to the remand of the proceedings. Under the circumstances, I hold that the addition made by the assessing officer does not suffer from any incongruity or infirmity and therefore, the same is sustained. Ground Nos. 2 & 3 are dismissed.”

prayed for grant of another opportunity before the AO for filing the

requisite evidences in connection with the agricultural land sold by the

assessee under consideration. Informing the location of the land as

well as the entries in the 7/12 extract, Ld. Counsel for the assessee

submitted that the officers have erred in not appreciating the entries

made by the Revenue authorities. Therefore, Ld. Counsel submitted

that, if an opportunity is granted, the assessee can demonstrate before

the authorities regarding the correctness of the entries and the nature

of the land being agricultural one with requisite evidences.

remanding the issue to the file of AO for fresh examination of

evidences on this particular issue relating to agricultural nature of the

land sold by the assessee. AO shall examine condition specified in the

said provisions and also to examine the location of the land and

applicability of the provisions of section 2(14) of the Act. Assessee is

also directed to file the necessary evidences before the AO and

demonstrate that the land sold by the assessee constitutes an

agricultural land from the point of view of taxation. With these

directions, the issue is remitted back to the file of AO for fresh

adjudication. AO shall grant reasonable opportunity of being heard to

the assessee in accordance with set principles of natural justice.

Accordingly, the grounds raised by the assessee are allowed for

statistical purposes.

Order pronounced on this 13th day of March, 2018.

Sd/- (D.KARUNAKARA RAO) लेखा सद� / ACCOUNTANT MEMBER पुणे / Pune; �दनांक Dated : 13th March, 2018. Satish

आदेश क� आदेश क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order is forwarded to : आदेश आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत

अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. आयकर आयु�(अपील) / The CIT(A)-2, Aurangabad 3. आयकर आयु� / The CIT-2, Aurangabad 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “SMC” / 5. DR ‘SMC’, ITAT, Pune; गाड� फाईल / Guard file. 6.

आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER,स आदेशानुसार

स�यािपत �ित //True Copy// //True Copy// Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune