M.R. Shah, J. - (1.) Feeling aggrieved and dissatisfied with the impugned judgment and order dated 06.12.2017 passed by the learned Income Tax Appellate Tribunal, Rajkot Bench, Rajkot in ITA No.259/Rjt/2014 for Assessment Year 2009- 10, by which the learned Tribunal has allowed the appeal preferred by the assessee and has directed the Assessing Officer to treat the profit of Rs. 68,18,800/- earned by the assessee on the sale of agriculture land as exempt under Section 2(14) of he Income Tax Act by holding that the proceeds from sale of land is to be treated as income from capital gain, the Revenue has preferred the present Tax Appeal with the following proposed questions of law:- "Whether the Appellate Tribunal has substantially erred in law in holding that the proceeds from sale of land is to be treated as income from capital gain?
(2.) Facts leading to the present appeal in nutshell are as under:- 2.1 The assessee filed her return of income for Assessment Year 2009-10 showing total income at Rs. 1,53,440/-; that during the course of assessment proceeings, the Assessing Officer notice that the assessee has shown profit of Rs. 68,18,800/-, claiming to be from sale of agriculture land; that the same profit of Rs. 68,18,800/- was claimed as exempt from tax on the ground that the land is not capital asset within the meaning of Section 2(14) of the Income Tax Act and as such, gain is not liable to tax under Section 45 of the Act; that the said land was purchased by the assessee's father on 28.03.2008 for Rs. 54,000/- and the same was gifted to the assessee by her father on 02.09.2008, where stamp duty of Rs. 59,100/- was paid taking the market value of the land at Rs. 12,00,000/-; that the said land was then sold by the assessee to M/s. SPG Infrastructure Ltd., Mumbai for Rs. 70,00,000/- and that the Assessing Officer rejected the claim of the assessee of exempt profit mainly on the ground that the land in question was sold to an industrial unit and had potential to be used for industrial purpose and therefore, the same was held as business profit and the Assessing Officer made addition of Rs. 68,18,800/- and assessed the income at Rs. 69,72,237/-. 2.2 Feeling aggrieved and dissatisfied with the above, the assessee preferred appeal before the learned CIT (Appeals). The learned CIT (Appeals) dismissed the said appeal and confirmed the addition made by the Assessing Officer and rejected the claim of the assessee of exempt profit on sale of land. 2.3 On an appeal, the learned Tribunal has allowed the said appeal preferred by the assessee and has directed the Assessing Officer to treat the profit of Rs. 68,18,800/- earned by the assessee on the sale of agriculture land as exempt under Section 2(14) of he Income Tax Act. 2.4 Feeling aggrieved and dissatisfied with the impugned judgment and order dated 06.12.2017 passed by the learned Income Tax Appellate Tribunal, Rajkot Bench, Rajkot in ITA No.259/Rjt/2014 for Assessment Year 2009- 10, the Revenue has preferred the present Tax Appeal with the following proposed questions of law:- "Whether the Appellate Tribunal has substantially erred in law in holding that the proceeds from sale of land is to be treated as income from capital gain?"
(3.) Mrs. Mauna Bhatt, learned Counsel has appeared on behalf of the appellate-Revenue.;