16 January 2019
In one of client’s case, ROI filed showing capital gain on sale of Agri. land and assessment completed u/s. 143(3) r.w.s.147, but subsequently it is found that the said land is not capital assets as it is away by more than 6 Km from nearest municipality, satisfying exemption as provided in Sec 2(14) of IT Act. My question is – (1) Can I Claim before CIT (A), that actually there is no capital gain on sale of land as said agri land is not capital asset ?
16 January 2019
Yes, any issue can be raised before CIT (Appeal). His power in appellate jurisdiction is co-terminus with the power of AO and CIT (Appeals) can call for new documents, take further evidence etc. Section 154 is a restricted Section and can be used only for rectification apparent from the record. As the error you want to get corrected was never discussed in the order, nor pleaded in the proceeding before AO; application under Section 154 is not the right way.
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