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TMI Blog2016 (6) TMI 1246X X X X Extracts X X X X X X X X Extracts X X X X ..... e officer goes against the fact admitted by the assessee. Since the assessee itself admits that the land was converted into housing plots as on19-09-2006 the same cannot remain as agricultural land for any longer. In other words, the purpose and usage of the land was converted into non-agricultural land as on 19-06-2006 and part of the land was sold as on 27-03-2007. Therefore, this Tribunal is of the considered opinion that when the assessee itself claims that the land was converted into non agricultural land as on 19-06-2006 it cannot continue as agricultural land any further. Therefore, the certificate said to be issued by the village officer has no relevance in view of the facts admitted by the assessee. Hence, there is no justification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ought to have allowed at least the profit arising on conversion of agricultural land into stock-in-trade as exempt by applying the provisions of section 45(2) of the I T Act read with section 2(14)(iii) 4 The briefly stated the facts of the case are as follows: For the assessment, 2010-11, the assessee company had filed the return of income declaring a total income of ₹ 38,05,78,820/-. In the return of income, profit on sale of land amounting to ₹ 24,26,299/- was claimed as exempt. According to the assessee this land is agricultural land situated outside the municipal limits. The AO, while completing the assessment u/s 143(3) applied provisions of section 45(2) and assessed 50% of the gain as short term capital gain and b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olution, the land was purchased on 29-03- 2005. Within a period of six months, i.e. on 19-09-2006 another resolution was passed to convert the land into residential plots. Moreover, the Memorandum of Understanding of the company was also amended so as to enable the company to carry on business in real estate. On 27-03-2007 the assessee sold 188 cents of land to various parties and also entered into agreement for construction of building in the said land. Therefore, as on 27-03-2007 the assessee is not the owner of the land; at least for 188 cents of land. It is not known when the remaining portion of the land was sold by the assessee to other persons. The first question arises for consideration is whether the land which was converted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) says that the land was situated at resurvey Nos. 299/4, 324/2, 324/3, 324/5,324/1, 324/6 and 299/2 of Aikkaranadu North village. The village officer certifies only resurvey Nos. 324/1, 324/2, 324/3 324/4 belonging to the assessee and it was agricultural land. In respect of land in resurveyNos.299/4, 299/2, 324/5 and 324/6 there is no material available on record to suggest that it was agricultural land. The resurvey Nos. 299/4, 324/5,324/6 and 299/2 are omitted in the certificate said to be issued by the village officer. Furthermore, the admitted case of the assessee is that part of the land to the extent of 188 cents of and was sold to various persons on 27-03-2007. If that is so, it is not known which survey number of the land tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mits that the land was converted into housing plots as on19-09-2006 the same cannot remain as agricultural land for any longer. In other words, the purpose and usage of the land was converted into nonagricultural land as on 19-06-2006 and part of the land was sold as on 27-03-2007. Therefore, this Tribunal is of the considered opinion that when the assessee itself claims that the land was converted into non agricultural land as on 19-06-2006 it cannot continue as agricultural land any further. Therefore, the certificate said to be issued by the village officer has no relevance in view of the facts admitted by the assessee. Hence, there is no justification in the claim of the assessee that the land is an agricultural land. This Tribunal is o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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