9911796707
TMI Blog2023 (4) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... illage Revenue Officer, Devarapalli, dated 24/2/2023 has confirmed the land as an agricultural land. There is also no dispute by the Revenue on the consideration received by the assessee. In our considered opinion, since the said lands were entered into the Revenue Records as agricultural lands which was not disputed by the Revenue, the gain on sale of land cannot be considered as capital gains for the purpose of the Act. Pr. CIT has not brought on record that the assessee has sought any permission for conversion of the agricultural land to non-agricultural land. Since the character of the land remained as agricultural land both on the date of purchase and on the date of sale, it is a sale of agricultural land and no capital gains aris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act along with a questionnaire was issued and the same was served on the assessee. The Ld. AO in his order observed that despite several opportunities given to the assessee, the assessee did not respond to the same and therefore issued notice U/s. 274 r.w.s 271(1)(b) of the Act asking the assessee to show cause why penalty should not be levied U/s. 271 of the Act and was provided an opportunity of being heard on 17/7/2017. Since the assessee did not appear nor filed any written explanation, a penalty U/s. 271(1)(b) was imposed on the assessee vide order dated 16/8/2017. Further, notice U/s. 142(1) of the Act was issued and served on the assessee. In response to the notice the assessee s Representative appeared and produced the required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT found that the assessee has purchased these lands with the ultimate motto of selling the lands and hence it cannot be considered as a simple transaction of sale of agricultural lands thereby attracting the capital gains on the sale of such lands. The Ld. Pr. CIT therefore directed the Ld. AO to pass necessary order giving effect to the revision order U/s. 263 of the Act considering the capital gains on the sale of land as short term capital gains. The Ld. Pr. CIT also directed the Ld. AO to afford one more opportunity to the assessee before passing the consequential order. Aggrieved by the order of the Ld. Pr. CIT, the assessee is in appeal before the Tribunal. 3. The assessee has raised Five grounds of appeal wherein the crux of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO be upheld. Per contra, the Ld. DR relied on the order of the Ld. Pr. CIT. 5. We have heard both the parties and perused the material available on record and the orders of the Ld. Revenue Authorities. Admittedly the Ld. Pr. CIT has not brought on record to show that the lands have been used for non-agricultural purposes. From the submissions of the Ld. AR we find that the assessee has acted as a intermediary for the purchase and sale of agricultural lands during the impugned assessment year. The only contention of the Ld. Pr. CIT is that the assessee has purchased the land in Acres and sold the same in Square Yards within a span of one month for a huge consideration. However, the Ld. Pr. CIT erred in appreciating the fact that the pur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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