Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (3) TMI 1645 - AT - Income TaxAddition of surplus/profit on sale of agricultural lands under the head 'capital gains' - nature of land - applicability of exceptions carved out in the definition of 'capital asset' in section 2(14)- Held that:- When the assessee submitted the evidences to prove that the land in question was agricultural land and the crops were grown in the form of coconuts and mangoes burden shifts on AO to prove with the documentary evidence that the land was not used for the agricultural purpose or no agricultural operations were carried out in the subject land. Agricultural income is exempted income and merely because the assessee has not returned agricultural income and no expenditure was claimed for agricultural expenses cannot be conclusive proof to hold that subject land was not agricultural land. The assessee’s explanation that the agricultural income is exempted income and due to non-declaration agricultural income no expenditure was claimed appears to be reasonable Explanation. Records are showing that the lands are agricultural land, classified as dry land for which Kisthu has been paid and falls far exclusion from the definition of capital asset u/s.2(14) of Income Tax Act. Thus land in question sold by the assesse was agricultural land and cannot be held as capital asset and no capital gains are chargeable - Decided in favour of assessee
|