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2013 (9) TMI 237 - AT - Income TaxComputation of capital gain - Capital asset or agricultural land - Sale of land - Difference between sale consideration shown in agreement to sell and conveyance deed - Held that:- certificates issued by village officer and the revenue authority - those authorities have issued the certificates on the basis of assertion made by the assessees herein, i.e., they did not make any reference to the revenue records or other records maintained by the Government. None of the assessees has declared any agricultural income even in the returns of income filed after the date of search. In the cash flow statements, meagre amount of agricultural income was shown by each of the assessees, but they could not give any credible evidence in support of the same. Even though these assessees have admitted that the possession of land was given in January 2006 itself, still they have shown agricultural income in the years relevant to the assessment years 2007-08 and 2008-09. These facts prove that the agricultural income shown in the cash flow statements do not have any basis. The assessees herein could not bring any credible evidence to prove existance of various trees on the land. Further, the assessees could not bring evidence to show that they carried out agricultural operations on maintenance of those trees, sale proceeds realised on sale of produce etc. The tax authorities have pointed out that the assessees themselves has described the impugned land as "Stadium land" in the conveyance deed and further in the Form 1B annexed to the conveyance deed, the impugned land was described as "Commercial land". - The land in question is not a agriculture land - Decided against the assessee. Taxability of capital gain - Year of transfer - section 2(47) - Held that:- the transfer has taken place only on 13/02/2008, thereby the capital gain arising therefrom is assessable in the assessment year 2008-09 Enhancement of sales consideration - Held that:- The intention of the owners with regard to the user and sale of land, singularly and cumulatively go to establish that the land in question was never held as an agricultural land wef 2001 and never sold as an agricultural land at the time of sale - The tax authorities have pointed out that the assessees themselves has described the impugned land as "Stadium land" in the conveyance deed and further in the Form 1B annexed to the conveyance deed, the impugned land was described as "Commercial land" - assessing officer did not make any enquiries with the buyers - Thus, the AO has reached his conclusions without conducting proper enquiries - Though the Ld CIT(A) has rejected the said story, but the fact remains that the decision was taken by both the tax authorities without examining buyers - issue relating to determination of actual sale consideration needs to be examined afresh at the end of the assessing officer - Decided in partly in favour of assessee
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