Hon’ble ITAT Delhi held in case of ITO Vs Essjay Enterprises (ITAT Delhi) Appeal No : ITA No. 2152/DEL/2013 Date of Order: 26/07/2023 that sale proceeds received from the sale of land is income derived from agricultural land which is exempt under Income Tax law. The main finding of ITAT is as under:
6. In regard to ground no. 1 it can be appreciated that based upon the additional evidence allowed under rule 46A of the Income-tax Rules, 1962, remand report was sought from the learned AO and learned CIT(Appeals) after taking into consideration the remand report has concluded that learned AO has not doubted the fact that based upon the parameters about situation of the land beyond 8 kms. of the municipal limits of the Municipality Tizara and the population of the villages in which land was situated was less than ten thousand as per last census the, land sold by assessee was agricultural land and the sale proceeds received from the said sale of land was income derived from agricultural land which is exempt. Thus there is no error in the findings of learned CIT(Appeals) as the sale of land has given rise to profit from sale of agricultural land.
6.1 Further learned AO’s report also establish the fact that Revenue Officers of the concerned Revenue estae acknowledged the fact that assessee had grown crops during the agricultural year and the bills filed confirmed with the Agricultural Produce Market Committee of Khairthal. So the sale of produce of Rs. 7,20,512/- on agriculture land is also not business receipt.
