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TMI Blog2015 (4) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... ted land, therefore, intention to purchase for business was absent. Though, it may not be entirely relevant but we cannot ignore the fact that the sale proceeds/capital gains were invested in approved bonds, (NABARD Bonds) and were not invested in any business. Taxable as capital gains - Decided against the Revenue. - ITA No. 82/Hyd/2015 - - - Dated:- 24-4-2015 - Shri P.M. Jagtap, Accountant Member AND Smt. P. Madhavi Devi, Judicial Member For the Revenue : Shri Rajat Mitra, DR For the Assessee : Shri P. Murali ORDER Per Smt.P. Madhavi Devi, J.M. This is an appeal preferred by the Revenue against the order of the CIT (A) VI, Hyderabad dated 15.09.2014 relating to the A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vinced with assessee s contentions and held that the income from sale of plots is business income of the assessee and accordingly brought it to tax. 3. Aggrieved, assessee preferred an appeal before the CIT (A), who allowed the same by following the order of the Tribunal in assessee s own case for the subsequent A.Y i.e. 2006-07. Aggrieved by the relief given by the CIT (A), the Revenue is in appeal before us. 4. Having considered the rival contentions and the material on record, we find that the assessment for the year under consideration i.e. A.Y 2005-06 was reopened by the AO based on the assessment order for A.Y 2006-07 and the issue had travelled upto the Tribunal for A.Y 2006-07. The Tribunal vide order dated 11.10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) Was the purchaser a trader and were the purchase of the commodity and its resale allied to his usual trade or business or incidental to it? The answer to this in the present case is in the negative because there is no evidence to show that Assessee at any time did any business on land (b) If the commodity purchased is generally the subject-matter of trade and if it is purchased in very large quantities, it would tend to eliminate the possibility of investment? In the present, case agricultural land purchased by Assessee's mother, who had no intention of doing any business at the time of purchase and it was she, who sought HUDA permission for sale to obtain better price and Assessee has only inherited the property, therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that determines the character of the transaction. A cumulative consideration of the facts of the present case unmistakably points to the transaction of sale being a realization of the investment in land and consequently the gains are chargeable only to capital gains tax and not to be considered as gains of an adventure in the nature of trade. 10. In coming to this conclusion we have duly taken note of the following facts: (a) In the present case, Assessee is an agriculturist and did not carry on any business, (b) The land was purchased as agricultural land way back in 1979, (c) Agricultural operations were carried on for more than 20 years and the land was inherited by Assessee which is in the process of develo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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