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TMI Blog2005 (7) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... in the year 1951. In the middle of 1990, the assessee was forced to sell his lands apprehending compulsory acquisition by the Government or encroachment, etc. The learned counsel for assessee submitted the assessee decided to sell the land and entrusted the work of converting agricultural land into non-agricultural for the purpose of laying down saleable plots to one Parekh on commission basis. The plots were then sold for consideration. The learned counsel for assessee further submitted that the transaction cannot be treated as business and there is no element of adventure in the nature of trade. Therefore, treating income derived by the assessee as business income is not justified. The land was actually held by the assessee for a period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rist, R/o Bijapur Vendor : Belaji Malhari Gayakawad, Age : 41, Caste Maratha, Business and Agril., R/o Bijapur, Execute this sale deed : The land situated in village Mahalbagayat, R.S. No. 89, measuring 17 acres 11 gunthas, assessed at Rs. 1-00 in Taluka and Distt. Bijapur is owned by executant. This land was acquired in a family partition and personally cultivated and in occupation of vendor. As the vendor is in family difficulty, so in order to meet the family needs. The vendor had taken for sale. The sale price is highest in the market. So also the vendee offered at a highest price of Rs. 1,500. So the vendor had agreed to sell the land by a deed of out and out sale. So, the vendor had received a sum of Rs. 500 as an earnest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that event, the assessee has no other option except to sell his land for his family livelihood. This cannot be termed as business or adventure in the nature of trade. Further it is to be seen that if the land is sold in one big piece, the assessee may get only a small sum. On the other hand, if the land is developed and sold, he may get some enhanced price so that his family can live in peaceful manner. Merely because the land was plotted out and sold, it cannot be said that the transaction is adventure in the nature of trade and business. The authorities below misconceived the facts. In our view, the transaction that has been done by the assessee cannot be considered to be a business but it is only an attempt for livelihood for himself and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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