9911796707
TMI Blog2022 (2) TMI 982X X X X Extracts X X X X X X X X Extracts X X X X ..... sing in the assessment order dated 19.11.2018 passed by the Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning AYs. 2016-17. 2. The facts of the case are that learned PCIT noticed that during the year assessee has sold land bearing Survey No. 350 admeasuring 33387 sq. mtrs. situated at Village Rupgadh, Taluka Bavla for Rs. 95,20,000/- vide sale deed No.2592 dated 03.10.2015. The assessee had purchased this land on 31.03.2014 for Rs. 34 Lacs. On further verification of return of income and other details filed by the assessee, AO found that the assessee has not offered any capital gain on sale of this land by treating it agricultural land. It was further found that the said land was sold by the assessee t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) Copy of Form 8A for holding of agricultural land for Blocks bearing Survey No.350 by you for the year under consideration. ii) Details of the land used for agricultural purposes for Blocks bearing Survey No.350 for the last two preceding and current years along with details of revenue paid and a certificate from the Talati for the crops taken, etc. iii) Details of agricultural income earned for the last two preceding and current year along with details of sale of crops with copies of sales bills and show whether the same has been disclosed for the last two preceding and current year. 3.1 In response, the assessee had filed written submission vide letter dated 20.03.2021. With regard to permission granted by the Industrial Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... careful examination of permission dated 03.05.2013 and Eligibility Certificate dated 14.08.2015 granted by the Industrial Commissioner attached with the sale deed property sold, it is found that purchaser was in the process of acquiring the land purchased by it and sold by the assessee. Thus, it got the land use changed. So, in these circumstances, land on the date of sale i.e. on 03.10.2015 was no more agricultural land and as such the profit arising on transfer of the land are taxable as long term capital gain. 4. Now, the assessee has come before us to challenge the order of the learned PCIT. 5. We have gone through the relevant record and impugned order. The assessee purchased the agricultural land in question on 31.03.2014 for Rs. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... land in quest ion was sold to an industrial unit I and had potential to be used for industrial purpose - Tribunal , however, allowed assessee's claim - It was noted that assessee was an agriculturist and, land owned by him had been shown as agricultural land in revenue records - Moreover, land in quest ion was sold by assessee after a period of approximately 15 to 16 months from purchase and, thus, it could not be a regarded as a case of 'adventure in nature of trade - Whether in aforesaid circumstances, mere intent ion of purchaser could not be a determinative factor to treat prof i t earned by assessee on sale of agriculture land as business, income - Held, yes - Whether, therefore, Tribunal was justified in al lowing assessee' ..... X X X X Extracts X X X X X X X X Extracts X X X X
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