IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI K.M. ROY, ACCOUNTANT, MEMBER (Assessment Year : 2014–15)

Manisha Ashutosh Shewalkar West High Court Road ……………. Appellant Laxmi Bhavan, Nagpur 440 010 PAN – AJIPS1038B v/s Income Tax Officer ……………. Respondent Ward–5(3), Nagpur Assessee by : Shri Manoj G. Moryani Revenue by : Shri Abhay Y. Marathe Date of Hearing – 03/04/2025 Date of Order – 04/04/2025

O R D E R

PER V. DURGA RAO, J.M.

Aforesaid appeal by the assessee is emanating from the impugned order dated 15/01/2025, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2014–15.

2. The assessee has raised following grounds:–

“1. The order passed U/s. 143(3) r.w.s. 147 of the Income Tax Act, 1961 is illegal, invalid and bad in law;

2. On the facts and circumstances of the case, the Ld. NFAC failed to consider that agriculture income were duly shown and accepted in previous years by revenue, therefore the order passed is illegal, invalid and bad in law;

3. On the facts and circumstances of the case, the Ld. CIT(A) NFAC failed to consider actual use of the land at the time of Memorandum of Understanding dated 15/06/2012 was agriculture land, therefore order passed is illegal, invalid and bad in law;

4. On the facts and circumstances of the case, the Ld. CIT(A) NFAC failed to consider that land were duly shown as agriculture land in sale deed as well as Memorandum of Understanding dated 15/06/2012, therefore the order passed is unjustified, unwarranted and excessive;

5. On the facts and circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) National Faceless Appeal Center [CIT(A) NFAC] confirmed the addition of Rs. 1,11,50,582/- made by assessing officer is unjustified, unwarranted and excessive;

6. On the facts and circumstances of the case, the Ld. CIT(A) NFAC erred in not considering that the land sold by the assessee is agriculture land and situated beyond 8 Kms from Municipal limit of Nagpur and is exempt from tax, therefore addition made is unjustified, unwarranted and excessive;

7. On the facts and circumstances of the case, the Ld. CIT(A) NFAC erred in not considering that the land sold by the assessee is agriculture land as shown in extract of 7/12 and also as per Memorandum of Understanding dated 15/06/2012, therefore without considering government land record addition made is illegal, invalid and bad in law;

8. On the facts and circumstances of the case, the Ld. CIT(A) NFAC ought to have considered that the land is situated at 8 Kms away from Nagpur Municipal Limit as well as extract of 7/12 showing as agriculture land hence income earned from agriculture land by way of sale is exempted and not capital assets of the assessee as per provision of section 2(14) Income Tax Act, therefore addition made is illegal, invalid and bad in law;

9. On the facts and circumstances of the case, the Ld. CIT(A) NFAC erred in not considering that the aforesaid;

agriculture land was converted into non-agriculture as per the order of the Deputy Divisional Officer, Nagpur, in which clearly mentioned that conversion application made by the Purchaser Varon Auto Kast Ltd. and not assessee, therefore addition made is illegal, invalid and bad in law;

10. The assessee is denied the liability of interest charge U/s. 234A, 234B and

234C of the Income Tax act, the same may kindly be deleted;

11. The appellant craves leave to amend, add or take a new ground or grounds at the time of hearing.”

3. Facts in Brief:– The Assessing Officer received information from DDIT (I&CI)-1, Nagpur, that during the assessment year under consideration, the assessee, jointly with two others, had sold an immovable property i.e., agricultural land totalling area 7.16 Hectares, situated at Mouza Chimnazari, P.S.K. 84, to M/s Varon Auto Cast Ltd., which was valued at ` 4.50 crore, which was more than the valuation of ` 1,91,75