INCOME TAX OFFICER Vs. DIPAK KALIDAS PAUWALA

JUDGEMENT

(1.) THIS Revenue's appeal for AY 2008 -09, arises from order of the CIT(A) -II, Surat dated 30.8.2011 passed in case No. CAS -II/387/2010 -11/176, reversing the Assessing Officer's action in adding long term capital gains of Rs. 1,46,75,120 and treating assessee's agricultural income of Rs. 1.77 lakhs under the head "other" sources; respectively, in proceedings under section 143(3) of the Income -tax Act, 1961 (for short the Act).

(2.) Facts of the case are in a narrow compass. The assessee - individual co -owned a parcel of land measuring 29,718 sq.mtrs. in RS No. 192, Block No. 305, village -Dindoli, Surat situated within its municipal corporation limits. The assessee transferred the same to the Corporation on 28.3.2008 by way of a registered deed. The purpose stated in the sale deed happens to be reservation of the land for a sewerage treatment plant. The consideration money reads Rs. 5,94,36,000/ -. The Surat municipal corporation vender also deducted TDS of Rs. 15, 15, 173/ - under section 194 LA of the Act. The assessee enclosed the said TDS certificate, claimed exemption of the sale deed amount of Rs. 1,42,93,050/ - u/s. 10(37) including his agricultural income in question of Rs. 1.77 lakhs.

(3.) THE Assessing Officer took up scrutiny. He received AIR information about the assessee having executed the sale deed in question. He sought for the necessary details i.e. cost of acquisition as on 1.4.1981, copy of 7/12 and 8 -A revenue documents proving the assessee to be the land holder, income/expenditure account of the agricultural income, purchase and sale bills of seeds, fertilizer and agricultural produce along with working of capital gains arising from the above stated transfer. He also proposed to treat the assessee's agricultural income of Rs. 1.77 lakhs under the head ''other'' sources.