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TMI Blog2018 (1) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,75,000/-. Admittedly, he did not obtain the permission of the RBI under Section 47 of the Foreign Exchange Management (Acquisition & Transfer of Immovable Property in India) Act, 1999, which prohibits acquisition of agricultural land by an NRI. The fact that he had levelled the land and enhanced its saleability is also an indication of his intention to resell the land even when he purchased it. He had made huge profits consequent to the sale and therefore undoubtedly the transaction amounts to “adventure in the nature of trade”. The profit which he made out of this sale would therefore be chargeable to tax under the head “income from business”. - I.T.A. No. 88 of 2015 - - - Dated:- 7-12-2017 - MR. K. VINOD CHANDRAN AND MR. ASHOK MENON, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and, opined that no agricultural activities have taken place on the land. It was purchased in 2006 and after leveling, it was sold in 2008. Soon after the purchase, the assessee had left for Saudi Arabia and he could not have done any agricultural activity, being a Non-Resident Indian (NRI) without obtaining permission of RBI under Foreign Exchange Management (Acquisition Transfer of Immovable Property in India) Regulation, 2000. The assessing officer held that the transaction was Adventure in the nature of Trade and accordingly brought to tax the property under the head income from business and determined the total income of the appellant at ₹ 56,19,593/- apart from the agricultural income return of ₹ 28,17,500/- as per A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16-08-2006 while he was still a Non-resident Indian and thereafter he did not do any agricultural operations on that land. After retaining it for about two years, he sold it to St.Antony's Timber Depot, Chevoor. In the meanwhile, he had also levelled the land by expending a sum of ₹ 1,75,000/-. Admittedly, he did not obtain the permission of the RBI under Section 47 of the Foreign Exchange Management (Acquisition Transfer of Immovable Property in India) Act, 1999, which prohibits acquisition of agricultural land by an NRI. The fact that he had levelled the land and enhanced its saleability is also an indication of his intention to resell the land even when he purchased it. He had made huge profits consequent to the sale and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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