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Sale of land situated above the limits of municipality doesn't amount to tax.
Sale of land situated above the limits of municipality doesn't amount to tax.
Shri Adela Krishna Reddy filed income return without including gains from sale of agricultural land as the land not within limits of municipality i.e distance of land is more than 8 kms. AO added the revenue from sales for taxation as amounted to short term capital gains. CIT(A) deleted orders of AO. ITAT sustained CIT(A) as the agricultural land is not within the limits set by HADA and thus, doesn't amount to STCG.-501876
1. Shri Adela krishna Reddy an individual filed its income return declaring total income at Rs.5,05,620.
2. AO, on scrutiny discovered that assessee had made sale of agricultural land and revenue from same sale isn't included in return for taxation.
3. Thus, AO added revenue to assessee's income as gains from sales amounts to short term capital gains.
4. Assessee contended before CIT(A) that sold agricultural land was beyond the limits of municipality i.e more than 8 kms set by HADA or Hydrabad board and thus, doesn't amount to STCG.
5. CIT(A) sustained assessee's contention as the land sales doesn't satisfy stipulated conditions to add land sales as short term capital gains(STCG).
6. HELD- ITAT upheld CIT(A).
7. Since, sold land was beyond the limits set by HADA i.e more than 8 kms of Municipality. In favour of Assessee Case Reference - Income Tax Officer Shri Adela Krishna Reddy.
