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TMI Blog2022 (1) TMI 924X X X X Extracts X X X X X X X X Extracts X X X X ..... idered in this case and we are of the opinion that the intention of the assessee is not to carry out agricultural operations only but to earn the profit. Therefore, the A.O has rightly taxed the income arising out of the sale of the lands as income from business. A gricultural income shown by the assessee - total holding of the land by the assessee is 65 acres. The agricultural income shown by the assessee is only ₹ 3,12,500/-. From the above, it is very clear that the agricultural income shown by the assessee is very nominal not only that it can be safely concluded that the assessee has not carrying any major agricultural operations and the return of income is showing some agriculture income claimed as exempt. The assessee is not improving the land purchased but the intention of the assessee has to be seen to assess the income. In this case, by considering the facts and circumstances of the case, we are of the opinion that the frequent buying and selling of the land is to earn the profit and the intention of the assessee is only quick earning of the money and therefore, the income earned by the assessee out of sale of land is a business income. The A.O as well as Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... land Purchase value 26/05/2008 B.Palanisamy Pilichi Village, Peiyanaicken Palayam Agricultural Land 45,760/- 27-10-09 B.Dhandapani Pilichi Village, Peiyanaicken Palayam Agricultural Land 45,760/- 15-12-05 R.Chandraganthi Pilichi Village, Peiyanaicken Palayam Agricultural Land 80,900/- 10-08-07 K.V.Hemavathi Pilichi Village, Peiyanaicken Palayam Agricultural Land 3,60,943/- 08-08-07 Sivakumar.J Pilichi Village, Peiyanaicken Palayam Agricultural Land 86,690/- 03-09-06 Valliammal, A.Kanakaraj Pilichi Village, Peiyanaicken Palayam Agricultural Land 32,930/- 01-06-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as submitted by the assessee provided as Annexure-1 (7 pages) to the assessment order. On perusal of the above table, it is evident that the assessee is purchasing and selling the lands from the year 1995 onwards. The assessee has performed more than 75 transactions which is clearly shows that the assessee is purchasing lands not to hold them as investment but sell them to quick returns in an organized manner. The buying and selling activity of land was characterized by multiplicity of transactions. All these facts clearly establish the presence of essential features of trade and intention of the assessee to earn the profits out of these transactions. All these transactions clearly establish that the assessee was engaged in adventure in nature of trade by purchase and sale at profit. He further noted that the intention of the assessee while purchasing the above lands was not an investment in the agricultural land but only stock in trade for re-sale and profit. It is immaterial whether the said lands were agricultural lands or not. Hence, the profit on sale of these lands assessed as business income and completed the assessment. 7. On appeal before Ld. CIT(A), it was submitted b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has to be concluded that the intention of the assessee is only to invest in agriculture land not to carry the business. 12. On the other hand, the Ld. D.R has submitted that the assessee has shown the agriculture land purchased by the assessee by way of investment in the balance sheet. Simply showing in the balance sheet as an investment is not sufficient. From the activities carried by the assessee i.e., frequent selling and buying of the agriculture lands is adventure in the nature of the trade and submitted that the A.O has rightly taxed the income earned by the assessee as a business income. 13. So far as agriculture income shown by the assessee is concerned, the Ld. D.R has submitted that the assessee is having 65 acres of land and the year under consideration, agricultural income shown by the assessee is only ₹ 3,12,500/-. From the above, it is very clear that the assessee is not carrying any agricultural activities, only buying and selling the properties and the A.O has rightly taxed the same as business income. 14. The Ld. D.R further submitted that the assessee is carrying the activity of buying and selling agriculture land as a continuous business activity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the sale of the land rightly treated by the A.O as business income. We, further find that simply showing the land in the balance sheet as an investment is not sufficient. The activities carried by the assessee i.e., buying and selling of the properties are considered in this case and we are of the opinion that the intention of the assessee is not to carry out agricultural operations only but to earn the profit. Therefore, the A.O has rightly taxed the income arising out of the sale of the lands as income from business. 17. In so far as the agricultural income shown by the assessee is concerned, the total holding of the land by the assessee is 65 acres. The agricultural income shown by the assessee is only ₹ 3,12,500/-. From the above, it is very clear that the agricultural income shown by the assessee is very nominal not only that it can be safely concluded that the assessee has not carrying any major agricultural operations and the return of income is showing some agriculture income claimed as exempt. 18. So far as another argument submitted by the assessee is concerned, the lands purchased as an agriculture land and sold as agriculture land therefore, the sale of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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