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TMI Blog2021 (5) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... purchased agricultural land bearing S.No. 29, H-No.01 at Kasal, District Sindhudurg for a consideration of Rs. 33,10,000/-. The AO in scrutiny assessment proceedings invoked the provision of section 56(2)(vii)(b) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') and adopted the fair market value of the property as determined by the stamp duty authority i.e. Rs. 1,73,91,000/- and made addition of Rs. 21,96,778/- i.e. to the extent of assessee's share in the land. The AR submitted that the provision of section 56(2)(vii)(b) of the Act are not attracted as agriculture land does not fall within the definition of 'capital assets'. To support his contention, the learned AR placed reliance on the decision of Jaipur Bench of the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal is dismissed. 5. In so far as factual matrix of the case is concerned both sides agree that it is a case of purchase of agriculture land. We find that even the AO while passing the assessment order has not disputed the fact that the land in question is agriculture land. Now, the issue before us is in narrow compass i.e. whether the agriculture land falls within the meaning of 'property' as defined in Explanation to section 56(2)(vii) of the Act. Before proceeding further, it is imperative to refer to the definition to the 'property' as defined in Explanation to section 56(2)(vii) of the Act, the same read as under:- "Explanation.-For the purposes of this clause,- (a) xx (b) xx (c) xx (d) "property" means the following capital as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... limits of any municipality or cantonment board referred to in item (a) and which has a population of more than one lakh but not exceeding ten lakh; or (III) not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten lakh. Explanation.-For the purposes of this sub-clause, "population" means the population according to the last preceding census of which the relevant figures have been published before the first day of the previous year;" 7. In the present case, we find that the assessee has not brought any evidence to show that the agricultural land purchased with other co purchasers does not fall within the exceptions as specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where the term "property" has been defined to mean a capital asset as so specified and where an immoveable property as so specified being land, building or both is not held as an capital asset, it will not be subject to the provisions of section 56(2)(vii)(b) of the Act. In the instant case, therefore, where the agricultural land doesn't qualify as falling in the definition of capital asset, provisions of section 56(2)(vii)(b) cannot be invoked. 20. In the instant case, whether agriculture land so acquired falls in the definition of capital asset or not, one has to refer to the provision of section 2(14) which exclude agriculture land in India subject to certain exceptions. However, there are no findings of the lower authorities in this r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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