9911796707
TMI Blog2013 (11) TMI 1591X X X X Extracts X X X X X X X X Extracts X X X X ..... t his business requirements. The actual business of developing and marketing the land is conducted by the developer and the profit from the same is realized by him. The assessee's stake in the entire transaction is only the sale consideration of his agricultural land for ₹ 30 lakhs. Once the amount of ₹ 30 lakhs is received by the assessee, balance entire sale consideration of the remaining land will be appropriated by the promoter. In these circumstances, the assessee's role in the whole transaction is only that of a seller of the agricultural land and for realizing his sale consideration of ₹ 30 lakhs. Therefore, we are of the considered view that the assessee has only sold his agricultural land at a sale considerati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee had made cash deposit of ₹ 27,79,400/- in his savings bank account,. Therefore, the case was selected for scrutiny for assessment and order under section 143(3) of the Act was passed on 29.12.2011 wherein one of the additions made was under the head income from business and profession being profit on sale of agricultural land for ₹ 21,32,000/-. 4. During the course of assessment, ld.AO observed that the assessee had sold agricultural land and deposited ₹ 27,79400/- in his savings bank during the previous year. After hearing the submissions of the assessee and perusing the materials on record, the ld.AO opined that the transaction was purely in the nature of trade and therefore, the income derived from the sale of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding that the land sold was agricultural land, which is exempt by virtue of section 2(14)(iii) of the Act by observing as under:- 5. I have gone through the assessment order of the AO and submissions made by AR of the appellant. The agricultural land located at Nettapakkam Village, Village No.67 Nettapakkam Commune, Bahur Municipality, Puducherry District received by the appellant by virtue of will dated 16.04.1982 executed by Gokilammal (appellant maternal grandmother). The AR of the appellant in his submission claimed that sale of agricultural land is not an asset within the meaning of Sec.2(14)/2(14)(iii) and therefore not an income assessable either under the head business or under the head capital gain as the AO has treated the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra that the above transaction is treated as sale of agricultural land and not a transactions which can be categorized as adventure in the nature of trade or business. Keeping in view of the above discussion the AO is directed to delete the addition made on account of sale of agricultural land in arriving a profit at ₹ 21,32,000/-The appellant succeeds on this ground. 6. Aggrieved by the order of the ld. CIT(A), the Revenue is in appeal before us. 7. Before us, ld.D.R argued in support of the order of the ld.AO and pleaded that the assessee had converted his agricultural land into stock-in-trade and has sub-divided the land into residential plots and marketed the same, which amounts to adventure in the nature of trade and there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had entered into an agreement with a layout promoter of residential land on the following terms and conditions:- (i) The layout will be plotted by the promoter of the land. (ii) Marketing of the land will be executed by the promoter of the land. (iii) On the advice of the layout promoter, the assessee will execute the sale deed in favour of the buyer of the land pointed out by the promoter. (iv) 90% of the sale proceeds of each plot will be paid to the assessee while as 10% will be appropriated by the developer, until the entire sale consideration of ₹ 30 lakhs is paid to the assessee. Thereafter the entire sale proceeds will be appropriated by the lay out promoter. (v) The aforesaid agreement is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
