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2021 (3) TMI 587 - ITAT CHENNAINature of land sold after plotting - Agriculture land or not - Adventure in the nature of trade - CIT(A) observed that, the assessee has not been able to establish that land was purchased with an intention of carrying out agricultural activity - CIT(A) further observed that purchase and subsequent sale of land after splitting it into flats is adventure in the nature of trade and income derived there from is to be taxed as business income. - HELD THAT:- Land in question has been classified in revenue records as agricultural land and it was fit for agricultural operations. Merely for the reason that no agricultural operations was carried out during the period and subsequent use of land for non-agricultural operations by the purchaser, cannot change characteristic of the land being agricultural land as nonagricultural land . Therefore, we are of the considered view that the Assessing Officer as well as learned CIT(A) were erred in coming to the conclusion that profit derived from sale of land is assessable under the head income from business or profession. Additions deleted.
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