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TMI Blog2018 (2) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... lected under CASS and in the scrutiny, assessee explained the source as sale of lands. The assessment was done u/s. 143(3) of the Income Tax Act [Act] dt. 07-12-2011 by adding an amount of Rs. 21,000/- being interest received on FD/Bank A/c. Thus, assessee's income was determined at Rs. 1,13,920/-. Later, the case was reopened u/s. 147 and AO treated the sale of lands as sale of 'urban lands' u/s. 2(ea)(v) of the Wealth Tax Act. AO brought the difference of Rs. 25,55,000/- as Short Term Capital Gain. It was explained by assessee that he purchased agricultural land in Dasaralapally Village, Kandukur Mandal, Ranga Reddy Dist., of about 3.5 Acres (3 Acre 20 kuntas) on 29-06-2006 for a consideration of Rs. 5,25,000/- and sold the same on 30-04- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent, Navallur, has certified that the land is away from municipality. In our view the other circumstances pointed out above outweights all of the circumstances in favour of the Revenue and on the basis of those circumstances, we are inclines to conclude that the property was not an agricultural land". Therefore, respectfully following the decision of the Hon'ble ITAT in the above case, I am in agreement with the reasons of the Assessing Officer and the addition made by the Assessing Officer confirmed and the ground of appeal is dismissed". 4. Reiterating the contentions, it was the submission of Ld. Counsel that the lands-in-question are agricultural in nature. 5. Ld.DR, however, submitted that assessee did not do any agricultura ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 (SC): In the relevant case law the land sold to a housing cooperative society for commercial purpose and hence the relevant case law is not applicable to the assessee. 2) Union of India vs S Muthyam Reddy, 106 Taxman 501 (SC): In the above case law, it was viewed that income arising from transfer of agricultural lands cannot be treated as agricultural income. The question remains that the land used for agricultural purposes whether situated in areas mentioned in section 2(14)(iii)(a) or (b) is an capital asset. 3) Chemmancherry Estates Co vs Income Tax Officer, 28 SOT 18 (Chennai) (URO): In the relevant case the impugned land was not fit for agricultural operations as it was a barren land having no irrigation facilities and was situ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icipal limits and are considered as 'urban lands' by way of provisions of Section 2(14) and explanation thereon. Here the lands in question are away from Municipal limits and cannot be treated as urban lands under W.T. Act or under IT Act. Be that as it may, what is noticed from the 'agreement of sale-cum-GPA' and 'sale deed' entered by assessee is that assessee never brought the said lands in his name. The agreement of sale-cum-GPA is from the original owners and assessee sold the same as GPA holder only. Thus, the ownership of land has to be examined. The mutation of land in assessee name was not placed on record. It is admitted that assessee has not earned any income from the land. Whether any agricultural/ development activity was under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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