Phool Singh Raghav Vs Assessing Officer (ITAT Delhi Bench)
Agricultural Land Cannot Remain Eight Kilometres Away While the City Moves Closer: Exemption u/s 2(14) Remanded
Background: The assessee, an agriculturist aged over 80 years, sold ancestral agricultural land situated at Village Badha, Tehsil Manesar, Gurgaon for ₹4,05,22,222 during FY 2010-11. He did not file a return u/s 139, claiming that the land was rural agricultural land outside the definition of “capital asset” u/s 2(14).
Based on AIR information concerning the transaction, the AO issued NMS notices. The assessee stated that the income was exempt but did not furnish complete supporting particulars.
The AO recorded reasons, obtained approval u/s 151 & issued notice u/s 148 on 23.03.2018. Relying upon a Haryana Government notification dated 20.03.2010, he concluded that the land fell within eight kilometres of the expanded municipal limits of Gurgaon.
The AO allowed only ₹1 lakh as cost of acquisition & assessed LTCG of ₹4,04,22,222.
The CIT(A) confirmed the assessment. The assessee approached the Tribunal with a delay of ten days, which was condoned considering his age, medical condition, illiteracy & unfamiliarity with electronic proceedings.
Reopening & Sanction Upheld
The assessee challenged the reopening, alleging absence of tangible material & inconsistency in the figures recorded by the AO.
