Kanchanben Maheshbhai Patel Vs ITO (ITAT Surat)
ITAT Pune order on determination of road vs aerial distance for agricultural land municipal limits & CBDT Circulars have binding authority in cases of interpretation conflicts
The key issue in this case was whether the land sold by the assessee qualified as a “capital asset” under Section 2(14)(iii)(b) of the Income-tax Act, 1961. If the land was within 8 kilometers of the municipal limits, it would be taxable under capital gains.
1. Facts of the Case:
The assessee, along with four co-owners, sold agricultural land located at Moje: Gam Kosmadi, Tal: Kamrej, Block No. 210 during AY 2012-13.
The sale consideration was ₹1,18,70,000, but the Stamp Valuation Authority (SVA) determined the Fair Market Value (FMV) at ₹4,06,63,235.
The assessee had not originally filed a return for AY 2012-13, leading to a reassessment under Section 147 with a notice issued under Section 148 on 30.03.2019.
The AO computed Long-Term Capital Gains (LTCG) at ₹21,64,895, applying Section 50C to tax the difference of ₹57,58,180 between the SVA value and actual sale price.
2. Assessment Order by the AO
The AO rejected the assessee’s claim that the land was outside the 8 km limit, raising the following points:
Comments are closed.