HARBHAJAN SINGH,PUNJAB V. COMMISSIONER OF INCOME TAX APPEAL, DELHI

ITA 209/CHANDI/2025

AI Insights

The case involves an appeal by Harbhajan Singh against the order of the Ld. CIT(A), National Faceless Appeal Centre, Delhi, which was passed on 13.12.2024 concerning the assessment year 2012-13. The primary contention revolves around the denial of exemption under section 548 of the Income Tax Act, 1961, where it was concluded that the land sold was not agricultural and was not utilized for agricultural purposes for the two years prior to the transfer. The Assessee argued that the land was indeed agricultural and was used for such purposes, supported by documents like the Fard Khasra Gardawri. The Assessing Officer's findings were contested, and it was claimed that the documents submitted were not considered by the CIT(A). The Tribunal found that the original girdawari was not produced before the Assessing Officer, leading to a decision to remand the case back to the CIT(A) for a fresh examination.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 835316 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 10-02-2025
• Other Referred Cases: Sanjeev Lal v. CIT [2014] 365 ITR 389/225 Taxman 239/46 taxmann.com 300 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: VINAYAK MALHOTRA
• Keywords: Capital asset

Judgement Text

" आयकर अपीलȣय अͬधकरण, चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, ‘A’, CHANDIGARH BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 209/CHD/2025 Ǔनधा[रण वष[ / Assessment Year : 2012-13 Harbhajan Singh, House No. 98, Gazipur, Dhakaull Derabassi, Mohali 140603 बनाम Vs. The ITO, Ward 5 (5), Chandigarh èथायी लेखा सं./ PAN NO: EIUPS4243F अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent ( HYBRID HEARING ) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Sh. Vinayak Malhotra, CA राजèव कȧ ओर से/ Revenue by : Sh. Vivek Vardhan, Addl. CIT, Sr.DR सुनवाई कȧ तारȣख/Date of Hearing : 09.02.2026 उदघोषणा कȧ तारȣख/Date of Pronouncement : 11.02.2026 आदेश/Order Per Krinwant Sahay, AM : Appeal in this case has been filed by the assessee against the order dated 13.12.2024 passed by the Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi Printed from counselvise.com 209-Chd-2025 2 2. Grounds of appeal, as raised by the Assessee are reproduced as under: 1. That the Ld. CIT is erred in law and facts of the case while issuing the order under section 143 r.w.s 147 of the Income Tax Act, 1961. 2. The Ld. CIT erred in denying the exemption under section 548 of the Income tax Axt, 1961 by concluding that the nature of land sold was not agricultural & was not being utilised for agricultural purpose for the preceding two years prior to the date of transfer, whereas the land transferred by the assessee on 03.02.2010 was agricultural in nature & was genuinely utilised for the agricultural activities. 3. The Id. CIT erred in not considering the date of agreement to sell, i.e, 03.02.2010 as the date of transfer of the capital asset, thus ignoring the fact that once the agreement to sell in respect of immovable property is executed, the vendor is restrained from conducting any activity on the said land as the vendee gets a legitimate right to enforce a specific performance of the agreement and the same would amount to transfer of a Capital asset. The issue has been considered by the Hon'ble Supreme Court, in the case of Sanjeev Lal v. CIT [2014] 365 ITR 389/225 Taxman 239/46 taxmann.com 300 (SC). Printed from counselvise.com 209-Chd-2025 3 4. The Ld. CIT erred in not considering the two-year usage of land to be reckoned from 03.02.2010, i.e, from the date of agreement to sell executed by the assessee and has failed to consider the reply furnished by the assessee, dated 06.02.2021, supported with the relevant documents, i.e, Fard Khasra Gardawri (Land Inspection report) for the period from year 2007 to 2011, substantiating the nature and the period of activity carried out on the land was of an agricultural nature. 5. The Applicant craves to add, amend, modify or alter any grounds at any time or before the hearing/decision of the application. 3. At the very outset, it has been submitted before the Bench by the ld. Counsel for the Assessee that the documents filed before the Ld. CIT(A) has not been considered and the addition has been confirmed on the basis of findings given by the Assessing Officer in the assessment order. 4. Per contra, the ld. DR relied on the orders of the authorities below. 5. We have considered the findings given by the Ld. CIT(A) and the arguments made by the ld. Counsel for the Assessee as well as the ld. DR. We find that the original girdawari has not even Printed from counselvise.com 209-Chd-2025 4 produced by the Assessee before the Assessing Officer. The Assessing Officer had no opportunity to look into the facts of the case as claimed by the Assessee. Therefore, in the fitness of things the matter is remanded back to the CIT(A) for adjudication afresh on merit after taking the remand report, if required, from the Assessing Officer. Needless to say, that the ld. CIT(A) will give proper opportunity to the Assessee to present its case and to furnish necessary evidences and details. The applicant is also directed to present its case before the Ld. CIT(A) as and when called for and will not contribute in unnecessary delay in the hearing of the appeal. 6 In the result, the appeal of the Assessee stands allowed for statistical purposes. Order Pronounced on 11.2.2026. Sd/- Sd/- ( LALIET KUMAR ) ( KRINWANT SAHAY) Judicial Member Accountant Member “आर.क े.” आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "