Should capital gains tax liability be determined on the sale of land along with construction?

Court :
ITAT Delhi

Brief :
This appeal by the assessee is preferred against the order of the Commissioner of Income Tax [Appeals], Meerut dated 29.01.2018 pertaining to assessment year 2009-10.

Citation :
ITA No. 2286/DEL/2018

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘SMC’ BENCH,
NEW DELHI [THROUGH VIDEO CONFERENCE]
BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
ITA No. 2286/DEL/2018
[Assessment Year: 2009-10]

Smt Vimlesh Devi

Gali No. 4, Kankerkhera

Meerut, Uttar Pradesh

The I.T.O

Ward – 2(4)

New Delhi

Date of Hearing : 20.10.2021
Date of Pronouncement : 20.10.2021
Assessee by : Shri Ramit Kakkar, CA
Revenue by : Shri Sanjiv Mahajan, Sr. DR
ORDER

The sum and substance of the grievance of the assessee is that the ld. CIT(A) erred in sustaining the view of the Assessing Officer that the impugned property is a capital asset.

2. Briefly stated, the facts of the case are that as per TEP information, the Assessing Officer came to know that the assessee has sold a certain piece of land situated at Khatauli District, Muzaffarnagar for a consideration of Rs. 11,31,540/– on which stamp duty value was determined at Rs. 18,85,900/–. When this information was confronted to the assessee asking her to explain as to why capital gains tax liability should not be determined on the sale of land along with construction, the assessee, in her reply, strongly objected claiming that there was no construction on the said piece of land.

3. A detailed enquiry was conducted by the Assessing Officer on the directions of the ld. CIT(A) and reported that the office of the Municipal Corporation Parishad has stated that the impugned property is located in Pargana Khatauli Budhana Road, Khatauli and was actually on 500 metres from the municipal limit. The ld. CIT(A), referring to the documents received from the office of Nagar Palika Parishad, Khatauli came to the conclusion that the findings of the Assessing Officer remained uncontroverted and therefore, no interference is called for in the order of the Assessing Officer.

4. In the result, the appeal filed by the assessee in ITA No. 2286/DEL/2018 is allowed for statistical purposes.
The order is pronounced in the open court in the presence of both the representatives on 20.10.2021.

Please find attached the enclosed file for the full judgement