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TMI Blog2020 (10) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... which was sold were indeed agricultural lands. Furthermore, it is relevant to note that the lands, which are subject matter of consideration are situated 40 Kms away from Thiruvallur Municipality and 30 Kms away from Madhavaram Municipality. Furthermore, the Village Administrative Officer had certified on 01.12.2008, i.e., prior to execution of sale deed that the assessees and their family members were using the land for agricultural purposes. Furthermore, the President of Andal Kuppam Panchayat within whose limits the land is situated, has certified that the assessees and their family members are using the lands for cultivation of paddi, sugarcanes, ground nuts, mango and coconut etc., and the land, as mentioned in the sale deed has to be construed as 'unbuilt land', but not 'non-agricultural land'. This document was placed before the assessing officer. Furthermore, the statements of neighbouring land owners were also available before the assessing officer. Therefore, on facts, the first appellate authority as well as the Tribunal has correctly concluded in favour of the assessee. CITA applied the test laid down by the Hon'ble Supreme Court in Smt.Sarifabibi Mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Ltd., on 03.12.2008 and received a total consideration of ₹ 51,56,80,000/- of which, the assessee in TCA No.324 of 2020 received ₹ 18,48,00,000/- and the assessee in TCA No.325 of 2020 received ₹ 3,13,50,000/- and their two sons have also received the sale consideration. 4. The assessing officer stated that they have received information that the assessees along with their co-owners (sons) had obtained approval from the Joint Director, Directorate of Town and Country Planning [for brevity 'DTCP'] for conversion of the land for nonagricultural purpose vide order dated 23.08.2008, i.e., prior to the execution of sale deed on 03.12.2008. Therefore, the assessing officer opined that on the date of sale, the land is no longer agricultural land and not eligible for claiming exemption for capitalised tax. The above was a reason for issuing notice under Section 148 Act dated 22.06.2012. 5. The assessee submitted a detailed reply dated 19.06.2013 supported by the relevant documents. The assessing officer, however, did not accept the stand taken by the assessees and completed the assessment under Section 143(3) read with Section 147 of the Act vide order dated 17 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 11.10.2018] held in favour of the revenue on the ground that the lands, which were sold were non-agricultural lands. Further, the learned counsel placed reliance on the decision in the case of Ranchhodbhai Bhaijibhai Patel Vs. Commissioner of Income-Tax reported in [1971] 81 ITR 446 (Guj.); Mahaveer Enterprises Vs. Union of India reported in [1997] 95 Taxman 220 (Raj.) and Sri Ranganatha Enterprises Vs. Commissioner of Income Tax [1998] 100 Taxman 552 (Karnataka). 10. Before we proceed to consider the decisions referred to by Ms.R.Hemalatha, learned senior standing counsel for the appellant, it would be relevant to take note of factual position, which have been recorded by the two authorities as well as the Tribunal. The reason for treating the land as non agricultural land is the approval granted by the Deputy Director of Town and Country Planning, which approval was granted on 23.08.2008 prior to the execution of sale deed dated 13.12.2008. This aspect of the matter was considered by the CITA, who took note of the various documents placed by the assessees including the report of the Sub-Registrar, who had registered sale deed dated 13.12.2008. After noting the facts, more pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Village Administrative Officer had certified on 01.12.2008, i.e., prior to execution of sale deed that the assessees and their family members were using the land for agricultural purposes. Furthermore, the President of Andal Kuppam Panchayat within whose limits the land is situated, has certified that the assessees and their family members are using the lands for cultivation of paddi, sugarcanes, ground nuts, mango and coconut etc., and the land, as mentioned in the sale deed has to be construed as 'unbuilt land', but not 'non-agricultural land'. This document was placed before the assessing officer. Furthermore, the statements of neighbouring land owners were also available before the assessing officer. Therefore, on facts, the first appellate authority as well as the Tribunal has concluded in favour of the assessees. 14. After taking note of the factual position, the CITA applied the test laid down by the Hon'ble Supreme Court in Smt.Sarifabibi Mohmed Ibrahim and found that the majority of the test were answered in favour of the assessees. The decision in the case of Ranchhodbhai Bhaijibhai Patel, on facts it was found that the lands seized to bear the charac ..... 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