- (1.) By way of this appeal, the appellant has challenged the judgment and order of the Tribunal whereby the Tribunal has partly allowed the appeal of the department and assessee's C.O. has been dismissed.
(2.) This court while admitting the appeal on 31.01.2017 framed the following questions of law:- "(i) Whether the Ld. ITAT was justified under law while reversing the findings of Ld. CIT(A) in respect of granting of relief of Rs.56,94,231/- exemption u/s 10(37) of the Act of 1961 by considering the Khasra Girdavari Report dated 05.12.2011 integral part of the order of Assessment as Annexure-A not furnishing information in respect of growing of Crop on the agricultural land during the year 2007-08? (ii) Whether the Ld. AO was justified under law to denying exemption u/s. 10(37) of the IT Act on the compensation received by the Assessee in respect of its land acquired by RIICO and making Addition of Rs.1,30,33,036/- as Capital Gain by considering a Khasra Girdavari which does not disclose the information for growing of crop during two years immediately preceding the date of transfer?"
(3.) Counsel for the appellant contended in view of provision Section 10(37)(ii) of the Income Tax Act which reads as under:- "In the case of an assessee, being an individual or a Hindu individual family, any income chargeable under the head" Capital gain" arising from the transfer of agricultural land, shall be exempted, where : Such land is situate in any area referred to in, item (a) or item (b) of sub-clause (iii) of clause (14) of Section 2 Such land, during the period of two years immediately preceding the date of transfer, was being used for agricultural purposes by such Hindu undivided family or individual, or a parent of his Such transfer is by way of compulsory acquisition under any law, or a transfer the consideration for which is determined or approved by the Central Government or the Reserve Bank of India Such income has arisen from the compensation or consideration for such transfer received by such assesses on or after the 1st day of April, 2004. It may be noted in this connection that exemption is available only if compulsory acquisition has taken place on or after 1-4-2004. Exemption is also available if acquisition has taken place before 1-4-2004 but compensation has been received on or after 1-4-2004. For the purposes of this clause, the expression, compensation or consideration" includes the compensation or consideration enhanced or further enhanced by any court, tribunal or other authority.";