Shanaj Vs ITO (ITAT Jodhpur)
ITAT Jodhpur held that addition of income and capital gain tax levied thereon is liable to be set aside as land not situated within the municipal limits of Sardarsahar. Accordingly, appeal of the assessee allowed.
Facts- The present appeal is preferred by the assessee. It is mainly alleged that the Lower Authorities have grossly erred in taxing the sale of land even though the agricultural land is situated beyond the Municipal Limits. Also alleged that AO has grossly erred in not taking into consideration the Govt Notification dated 01-07-1988 holding that the said land is beyond the municipal limits of Sardarshahar. Thus, contested that AO has grossly erred in not allowing the benefit of Section 54F of the Act.
Conclusion- Held the letter dated 04.04.2019 wherein it now clearly establishes that the land in question was not situated within the municipal limits of Sardarsahar, the basis of the Rajasthan Gazette dated 14.07.1988 could not be ignored. It arrived at a conclusion that while issuing the letter dated 24.08.2016, the Gazette seems to have been ignored and on realizing the same, the effect of the Rajasthan Gazette could not been ignored. Now this bench is of the view that the order passed by the Assessing Officer dated 28.12.2017 as well as the order upholding the same which passed by the ld. CIT(A) dated 23.08.2024 is hereby set aside and the addition of the income of Rs. 72,14,060/- and the capital gain Tax levied thereon is also set aside as per the settled principles of law. Hence, in view of the all the discussions made hereinabove, we do not concur with the findings of the ld.CIT(A) and thus the appeal of the assessee is allowed.
