INCOME TAX ACT, 1961

Section 2(14)

Capital gains - Nature of land sold - Capital asset or agricultural land - Remand of matter

AO observed that as per AIR information, assessee had sold immoveable property valued and required the assessee to furnish information with regard to the immoveable property sold by her. Assessee furnished copies of purchase and sale deeds of the property sold. From the sale deeds, AO observed that assessee had transferred land in favour of M/s. S for a consideration of Rs. 51,00,000, whereas the market value of the property was Rs. 1,06,80,000. Further, he observed that assessee had purchased the property for a consideration of Rs. 90,000 only on 19-7-2005. Therefore, AO was of the opinion that though gain from the transfer was chargeable to income tax under the head 'long-term capital gain', assessee had not declared any capital gain nor he had furnished any computation of capital gain as requested in the notice issued under section 142(1). Held: There was no representation of assessee before AO and before CIT(A), assessee pleaded that the land sold was agricultural land. However, assessee had not produced any evidence before CIT(A) to prove the exact nature of the agricultural land and also has not raised any objection as to why the sale consideration should not be adopted at Rs. 1,04,63,238. Since the assessee pleaded that proper opportunity was not given to the assessee and only in the interest of justice to give an opportunity to the assessee to furnish all the relevant material in support of her claim, it was deemed fit to remand the issue back to AO for de novo consideration in accordance with law.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2011-12

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