Case Number: ITA 748/DEL/2019
Appellant: ITO, Ward-3(3), Gurgaon
Respondent: Rohtash Singh, Sohnna Gurgaon
Assessment Year: 2007-08
Result: Favorable to Respondent
Case Filed On: February 1, 2019
Order Type: Final Tribunal Order
Date of Order: March 11, 2022
Pronounced On: March 11, 2022
The case ITA 748/DEL/2019 involves the appellant, ITO, Ward-3(3), Gurgaon, challenging the assessment made by the respondent, Rohtash Singh, for the assessment year 2007-08. The appellant filed the case on February 1, 2019, and the final order was pronounced on March 11, 2022.
Rohtash Singh, a resident of Sohnna Gurgaon, filed his income tax return for the assessment year 2007-08, declaring a total income of Rs. 3,00,567. During the assessment, it was noted that Singh had sold land located within 8 KM from the municipal limits of Gurgaon District and had received Rs. 2,40,80,848, which was not offered to tax. Consequently, proceedings under section 148 of the Income Tax Act were initiated, and a notice was issued to Singh.
During the proceedings, the Assessing Officer (AO) argued that the land sold by Singh was a capital asset within 8 KM of the municipal limits of Gurgaon and should be taxed as long-term capital gains. The AO based this conclusion on a certificate from the Revenue Authority indicating the land’s proximity to the municipal limits. Singh, however, contended that the land was agricultural and located approximately 22 KM from the nearest municipality, supported by a certificate from the Tehsildar.
The tribunal, comprising Accountant Member Sh. Anil Chaturvedi and Judicial Member Sh. Narender Kumar Choudhry, reviewed the case via video conferencing. The primary issue was the classification of the land and the resulting tax implications.
Key points from the tribunal’s findings include:
The tribunal upheld the CIT(A)’s decision, dismissing the Revenue’s appeal. The tribunal agreed that the land sold by Singh was not a capital asset within the meaning of section 2(14) of the Income Tax Act, as it was located more than 8 KM from the municipal limits of Gurgaon. This decision emphasized the importance of accurate classification of land and adherence to statutory definitions in tax assessments.
Order Pronounced in the Open Court on 11th March, 2022
Signatures:
(Narender Kumar Choudhry, Judicial Member) (Anil Chaturvedi, Accountant Member)
Date: 11/03/2022
Copy forwarded to:
Assistant Registrar
ITA 748/DEL/2019: ITO, Ward-3(3), Gurgaon vs Rohtash Singh, Sohnna Gurgaon – Assessment Year 2007-08
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform