Case Law Details
Swamiappan Vs DCIT (ITAT Bangalore)
ITAT Bangalore held that transfer of land specified as agricultural land in revenue records and which is used for agricultural operations, cannot be considered as transfer of capital asset. Hence not taxable under Capital Gains.
Facts- The assessee along with his three family members had jointly owned the lands situated at Uddanapally Village, Tamil Nadu and the said lands were sold to M/s. AVS Tech Building Solutions India Pvt Ltd by a registered sale deed dated 25-04-2018 for an apparent sale consideration of Rs. 66,42,000/-.
In the course of the search, the Search Team has found Sale Agreements of the aforesaid lands in the premises of the Purchaser M/s. AVS Tech Building Solutions India Pvt Ltd and as per the said Agreements the consideration agreed for sale was of Rs. 3,16,42,000/-, out of which a sum of Rs. 2,50,00,000/- was stated to have been received in cash by the assessee and his three family members and the balance of Rs 66,42,000/- was stated to have acknowledged as mentioned in the Sale Deed. The assessee has stated that the Sale Consideration of Rs. 66,42,000/- was mentioned in the sale deed on the basis of the prevailing guidance value applicable as on the date of sale.
Assessee claimed that sale proceeds are not chargeable to tax since the lands sold were agricultural land and hence exempted u/s 2(14) of the Act. AO rejected the said contention of the assessee. AO made addition in terms of Long Term Capital Gains. CIT(A) confirmed the said addition. Being aggrieved, the present appeal is filed.
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