9911796707
TMI Blog2012 (10) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... d at Nagpur is exempted from tax as the same falls under section 2 (14) (iii) of the I T Act. 3 The assessee is an individual and derived income from house property, capital gains and income from other sources. During the year under consideration, the assessee has shown exempt income of Rs. 58,11,000/- as capital gain arising from sale of agricultural land. The Assessing Officer asked the assessee to furnish the details and nature of exempt income along with supporting evidence. In response, the assessee furnished the relevant details and submitted that the same is on account of sale of agricultural land, being 50% share of the assessee at Mouje Bothali, PH No.74, Tahsil, Nagpur (Rural) Dist Nagpur. The total sale consideration was stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich shows the intention of the assessee was not to use the said land for agricultural purposes; but to earn the profit from purchase and sale of the land. Further, the learned DR has submitted that the land was sold to the builder for non-agricultural purpose. The land is situated at the main road and surrounded by SEZ and all the adjoining areas are developed. He has relied upon the decision of honourable Supreme Court in case of Commissioner of Income-tax v. Gemini Pictures Circuit Private Ltd. reported in 220 ITR 43(SC)/85 Taxman 594 as well as decision of honourable jurisdictional High Court in case of Gopal C. Sharma v. Commissioner of Income-tax reported in 209 ITR 946(Bom) and submitted that from the facts and circumstances of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 Km way from Nagpur Municipal limits. The appellant has claimed that this fact was not acknowledged by A.O. even though this was brought in his notice by the Tehsildar's certificate date 26-7-2006 which was filed during assessment proceedings itself. The appellant has taken a plea that in the order the Assessing Officer has wrongly mentioned that the Tehaildar certificate stating that the land is 22Kms away from Nagpur Municipal Limit was never furnished before him." The ld AR of the assessee has supported the order of the ld Commissioner of Income Tax (Appeals). 5 We have considered the rival submissions as well as relevant material on record. The assessee purchased the land in question on 17/11/2005 for a consideration of Rs.. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances, near future use of land etc. Thus, the question that a particular land is acquired and retained as an agricultural land has to be decided on the basis of totality of the relevant facts and circumstances and not by applying any single factor or test. 5.3 In the case in hand, no agriculture operation was carried out by the assessee on the land in question. Immediately after purchase, the assessee decided to sell it which demonstrates the intention of the assessee not to hold the land for cultivation or agriculture operation but to resale the same at the earliest possible occasion. Undoubtedly, the land is situated at the main road near the city of Nagpur and in the vicinity of SEZ which means, the entire surrounding area is com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for ascertaining the true character and the nature of the land, it must be seen whether it has been put to use for agricultural purposes for a reasonable span of time prior to the date of sale and further whether on the date of sale the land was intended to be put to use for agricultural purposes for a reasonable span of time in future. Examining the case from the said point of view, the High Court held that the fact that the agreement of sale was entered into by the assessee with a housing society is of crucial relevance since it showed that the assessee had agreed to sell the land for admittedly non-agricultural purposes. The ratio of the said decision was approved in Sarifabibi's case [1993] 204 ITR 631 (SC). 6 We do not think it necess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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