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2015 (4) TMI 365 - ITAT PUNEGain arising on sale of plots - treatment as adventure in the nature of trade - Held that:- It is the case of the assessee that there was later realization about scarcity of water and labour, but it is the case of Assessing Officer and CIT(A) that the assessee had not furnished any evidence in support of its claim of scarcity of water and labour. Further, it is undisputed that Kolhapur district is fertile and irrigated land and sugar cane is one of the highest yielding cash crops grown in abundance in this area. The CIT(A) has given a finding in this regard which has not been rebutted by the assessee. The assessee has failed to furnish any evidence of any agricultural activity being undertaken before the land was put to development and plotting. Both before the Assessing Officer or the CIT(A) and even before us, the assessee has not furnished any evidence in this regard. Further, the assessee has not even disclosed the location of land. Though the claim of the assessee was that it was not receiving a good price for the agricultural land, but the assessee has failed to bring on record any evidence to suggest that there was ever any intention to sell the said agricultural land as such. On the contrary, the assessee obtained the permission from the Collector, Kolhapur for the conversion of landholding from agricultural to nonagricultural and also plotting and development activities were carried out over the years which establish the intention of the assessee to enter into trading activities. In the absence of the assessee having failed to substantiate its intention to carry out the agricultural activities on the said land and / or the circumstances which prevented him from carrying on the said activity and / or the claim of scarcity of water and labour having been established by the assessee, we are in agreement with the inference drawn by the Revenue authorities. The continued organized efforts of the assessee and the value addition to the agricultural land is sufficient proof of the intention of the assessee to venture into trading activity in land. - Decided against assessee.
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