PCIT Vs Gomantak Eximis Ltd (Delhi High Court)
Delhi High Court held that income of agricultural land is exempt from tax and hence the same cannot be added to the books profit while calculating MAT under section 115JB of the Income Tax Act.
Facts- The appellant is essentially aggrieved by the Tribunal having refused to admit and rule upon certain grounds which were urged with regard to the applicability of Section 115JB of the Income Tax Act.
The respondent/assessee is stated to have undertaken a sale transaction with respect to a piece of agricultural land along with houses constructed thereon. It was claimed that the profit from the sale of that property would be exempt from taxation since it constituted a sale of agricultural land and would thus not fall within the ambit of the expression ‘capital asset’ as defined by Section 2(14) of the Act. Before us, it was not disputed that the land constituted rural agricultural land and would not fall within the scope of Section 2(14)(iii).
The present writ is filed mainly contesting that whether the ITAT is legally justified in not admitting and adjudicating legal grounds taken by the Revenue with regard to applicability of section 115JB of the Act?
