Itta/305/2013 Of Commissioner Of Income Tax-Iii v. Sri N.raghu Varma

IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD(Special Original Jurisdiction) PRESENT THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA AND THE HON’BLE Ms. JUSTICE G. ROHINI INCOME TAX APPELLATE TRIBUNAL APPEAL NO.305 OF 2013 DATED:17.7.2013 Between: Commissioner of Income Tax-IIIIT TowersA.C. GuardsHyderabad … Appellant And N. Raghu Varma … Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA AND THE HON’BLE Ms. JUSTICE G. ROHINI I.T.T.A. NO.305 OF 2013 JUDGMENT:(per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) We have heard Mr. B. Narasimha Sharma, learned counsel forthe appellant, and gone through the impugned judgment and order ofthe learned Tribunal. The learned Tribunal came to a fact finding that the assesseehad used the land for agricultural purposes, but later the agriculturaloperations could not be carried on due to drought conditions and saidland was sold. Therefore, it cannot be said to be a ‘capital asset’, asdefined in Section 2(14) of the Income Tax Act, 1961 (for short, ‘theAct’) nor can be said to be a capital gain. Under Section 54B of theAct capital gain on transfer of land used for agricultural purposescannot be charged excepting in certain cases stipulated in sub-sections (1) and (2) thereof.It is not the case that the land is situatedwithin the stipulated distance of Municipality or Cantonment Board. We do not find any reason to interfere with the order of the learnedTribunal. The appeal is accordingly dismissed. No order as to costs. ________________________ K.J. SENGUPTA, CJ ______________________ G. ROHINI, J 17.7.2013 bnr