ROSHAN LAL,HISAR vs. INCOME TAX OFFICER, WARD-3, HISAR, HISAR

PER SATBEER SINGH GODARA, JM:

This assessee’s appeal ITA no. 5211/Del/2025 for assessment year
2010-11 arises against CIT(A), Mysore’s order dated 01.07.2025 (DIN & Order
No. ITBA/APL/S/250/2025-26/1078083241(1), in proceedings u/s 143(3) r.w.s.
147 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.

Heard both the parties. Case file perused.
2. Coming to the first and foremost issue between the parties i.e. correctness of both the learned lower authorities’ action making long term capital gains addition of Rs. 29,73,979/-, there is hardly in dispute that the assessee was owner and in possession of some land(s) situated in the revenue estate of village Dhansu, tehsil

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and district Hisar, which was sold/transferred in the relevant previous year. It is made clear that there is again no quarrel between the parties regarding either the cost of its acquisition or that of improvement as the case may be.
3. Learned counsel submits in this backdrop that both the lower authorities herein have erred in law and on facts in treating the assessee’s land in question as a capital asset u/s 2(14) of the Act despite the fact that the same was situated very well beyond the statutory distance of 8 kms. from the nearest municipal limits. He also refers to various documents to buttress the point that the impugned land has already been held as beyond a distance of 8 kms. by the tehsildar and other authorities as well. The Revenue on the other hand draws strong support from both the lower authorities’ action making the impugned long term capital gain addition in the assessee’s hands.
4. I have given my thoughtful consideration to the foregoing vehement submissions.
The tribunal hereby notices that there is no concrete material/evidence in this case recording that the Assessing Officer had got the distance between the assessee’s land and the municipal limits of Hisar city, measured as per law as on the date of purchase/sale deed dated 15.03.2010 or that going by the CBDT’s circular)s) issued from time to time, as the case may be. It is thus deemed appropriate to restore the assessee’s instant first and foremost

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substantive ground back to the learned assessing authority to decide it afresh as per law in very terms.
5. Learned counsel at this stage submits that the total sale/purchase consideration in the hands of the purchaser herein Smt. Ram Bai has already been taken at Rs. 16,00,000/- in pursuance to the tribunal’s remand order. It is thus deemed appropriate to direct the learned assessing authority to consider the same as per law after examining all the relevant facts in consequential proceedings. All other issues between the parties at this stage are kept open at this stage. Ordered accordingly.
6. This assessee’s appeal ITA 5211/Del/2025 is allowed for statistical purposes.
Order pronounced in open court on 01.10.2025. (SATBEER SINGH GODARA)

JUDICIAL MEMBER
Dated: 6.10.2025. *MP*