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TMI Blog2011 (6) TMI 994X X X X Extracts X X X X X X X X Extracts X X X X ..... allowing the income of ₹ 55,69,429/- received by he assessee in the nature of long term capital gain and not as business income. 2) On the facts and circumstances of the send in law, the Ld. CIT(A) erred in not appreciating the fact that the agricultural land purchased was converted into non-agricultural land by appropriate authority and carried out activity in the nature of business resulting in profit. 3) On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating the fact that the assessee has done this with the intention of payment less tax treating the sale of land as long term capital gain." 3. The assessee has disclosed capital gain of ₹ 55,69,429/- from sale of land in its return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 02 and I.T.A. Nos. 1570 and 2343/Ahd/2008 for the assessment years 2003-04 and 2004-05 wherein it was held that income received by the assessee was in the nature of capital gain. The tribunal in that case has observed as under: "6. Heard both parties and perused the record. The undisputed facts i are that the land in question had been inherited and continued to hold it I as an investment and had also paid wealth tax on it. Subsequently permission for making construction on the said land was obtained from Vadodara Municipal Corporation vide letter No.L/9/96/98-99 dt.26.3.1998 and permission convening land into non-agriculture land was obtained from the concerned authority vide order No.L/A/SR/120/97-I 98 dt.18.3.1999. Vide a Development Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) has correctly held that the income, received by the assessee is in the nature of long term capital gains. We uphold the same and dismiss the appeals of the Revenue for all the three years under consideration." 5. Since no contrary facts have been pointed out, we respectfully following the order of the tribunal, confirm the order of Ld. CIT(A). Therefore, appeal of the revenue stands dismissed. 6. The assessee in the cross objections, has taken the following grounds: "The Learned Commissioner of Income Tax (Appeals)-V, Baroda has erred in law as well as on facts of the case by confirming the addition of ₹ 1,29,378/- in respect of agricultural income treated as income from other sources. The Learned Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee had 21.87 bighas of land and taking the yield @ ₹ 8,000/- per bigha, the accruable agricultural income would come to ₹ 1,74,960/-. In view of this, the A.O. treated the excess agricultural income of ₹ 2,30,821/- as income from undisclosed sources. Before CIT(A), following written submissions were filed on behalf of the assessee: "The Ld. A.O. has also mentioned in the order that, the assessee failed to substantiate the agricultural income declared by him with relevant documents. In this connection, it is submitted that your appellant has submitted that extract of 7/12 statement issued by the talatis of various villages. 4.3 I have carefully considered the facts of the case, the arguments of the A.O. and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultural income earned by the appellant. The income is already evidenced by the holding of land, evidence in government records and evidence of selling of the produce furnished by the appellant. However, the appellant has not been able to produce the details of expenses in relation to agricultural income earned. On an average about 25% of the income declared can be taken to be expenses met out of undisclosed sources and may be taxed as income from undisclosed sources. Hence, an amount of ₹ 1,01,445/- could be treated as unverifiable expenses. The net agricultural income will be ₹ 3,04,336/-. Out of the total disallowance of ₹ 2,30,821/- an amount of ₹ 1,29,378/- is sustained and the rest is deleted. This ground of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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