Case Law Details
Virvati Devi Vs CIT (ITAT Delhi)
The Ld. CIT(A) correctly noted that possession of the property in question was not transferred at the time of Agreement to Sale. After the Agreement to Sale the SDM vide order dated 26.02.2009 changed the land use and declared the land as non- agricultural. The sale deed dated 24.03.2009 was registered thereafter. It is therefore clear that the sale transaction was completed on execution of the sale deed and at that time the land had acquired the character of non-agricultural land.
Thus, on the date of sale, the land in question was not an agricultural land. The same would qualify to be considered as capital assets u/s 2(14) of the IT Act. The Ld. Counsel for the assessee did not dispute the findings of the fact recorded by the Ld. CIT(A) and reproduced above. He has merely contended that the Jot chankbandi document shows it was an agricultural land. This document is not relevant on the face of the findings of fact recorded above. The sale deed in question is executed by the assessee and is document produced by the assessee.
The assessee is therefore bound by the contents of the registered sale deed. The Agreement to Sale has no relevance to the matter in issue on execution of the registered sale deeds. Since prior to sale of the property in question, it was declared as industrial plot by the competent authority, therefore, it could not assume the character of agriculture land. Since industrial plot was sold by the assessee, therefore, it was correctly considered as capital assets for the purpose of computing long-term capital gain.
FULL TEXT OF THE ITAT JUDGMENT
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