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2016 (12) TMI 1624 - ITAT, MUMBAINature of land sold - agricultural land or capital asset - capability to agricultural operations - Held that:- CIT(A) has considered the revenue record and noticed that the impugned land has been shown as agricultural land. He has also noticed that there was no material to show that the land was put to non-agricultural purpose. He has noticed that the growing of grass was also an agricultural activity and the revenue records have also shown that the grass has been grown in the impugned land. The Ld CIT(A) has also noticed that the land under consideration has not been found to be barren land, incapable for agricultural operations CIT(A) has also addressed the concern raised by the AO that the assessee did not declare any agricultural income in the earlier year. The Ld CIT(A) has placed reliance on certain case law to accept the contentions of the assessee that the agricultural activities did not result in any surplus. We also notice that the Ld CIT(A) has noted that the hill development activity would not alter the character of land. In any case, it is the submission of the assessee that the hill development plan has not been executed by the Government so far. The ld CIT(A) has also noticed that the impugned land is located 45 Kms away from the town. Thus, we notice that the AO has drawn adverse inferences on the basis of his own reading of records and we notice that the Ld CIT(A) has addressed all of them by drawing support from various case law as well as the documents produced by the assessee. Hence we do not find any reason to interfere with the order passed by Ld CIT(A) on this issue. - Decided against revenue
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