TMI Blog2017 (12) TMI 1637X X X X Extracts X X X X X X X X Extracts X X X X ..... s. A perusal of the Chitta & Adangal shows the names of the assessee and the Kist having been paid as agricultural land and the Village Administrative Officer certified as specifying both single crop and double crop. The assessee has placed such substantial evidences and this is not rebutted by the AO in respect of the nature of the land, as to whether it is agricultural or not? AO has read into only the Sale Agreements and no other documents. Admittedly, the assessee is entitled to sell his land for the best possible price that can be generated, but if the nature of the land is agriculture, the same cannot be brought under the definition of capital asset for the purpose of levying long term capital gains. Further, what has been sold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,61,41,416/-. Since the assessee had not admitted any capital gains for the AY 2007-08, the assessment was re-opened. It was submitted by the Ld.AR that the assessee had purchased agricultural land situated at No.46, Thaiyur B Village, Chinglepet Taluk, Kancheepuram District, covering under Patta No.305, comprised in Sy.No.1273, measuring an extent of 115 cents on 04.05.1998. The assessee s brother Shri M.A.Antony had similar on 04.05.1998 purchased an extent of 50 cents agricultural land situated at No.46, Thaiyur B Village, Chinglepet Taluk, Kancheepuram District, covering under Patta No.305, comprised in Sy.No.1395/C5 on 04.05.1998. Similarly on 04.05.1998, Shri A.K.Thilakan had purchased an extent of 116 cents of agricultural land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et Taluk Kancheepuram District showing the total population at 7609. It was a submission that Chitta Adangal representing the Revenue Records in respect of the land sold by the assessee clearly showed that the land sold by the assessee is agricultural land. The distance from the nearest Municipality was more than 8 kms and the population of the nearest Taluk was also less than 10000. It was a submission that as the lands sold were agricultural lands, the assessee had not disclosed the long term capital gains in respect of the said land. In the returns in response to Sec.148, the details of the land sold was included but claimed as exempt. It was a submission that the AO had on the ground that in Cluase-13 of the Sale Agreement had specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on in the Receipts Payments Account, no expenditure has been claimed by the assessee towards agricultural operations for the relevant assessment years. The Ld.DR drew our attention to Page No.66- 76 of the Paper Book which is a copy of the Sale Agreement to submit that in Clause-11, the assessee had permitted the purchasers to create mortgages, lien, etc., with financial institutions or banks, in Clause-13, the assessee had agreed to execute Power of Attorney in the name of the nominee of the purchaser to facilitate the process of obtaining the necessary sanction, in Clause-14, the assessee had permitted the purchaser to undertake marketing operations in respect of the said land, in Cluase-16, the assessee had specifically agreed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kh. Explanation- For the purposes of this sub-clause, population means the population according to the last preceding census of which the relevant figures have been published before the first day of the previous year; 6. Thus, whether a particular land sold is agricultural land or not is to be determined as per the definition provided in Sec.2(14)(iii). What for, the purchaser of the land, uses the said land, will not determine, the character of the land sold in the hands of the assessee. When the facts in the assessee s case are examined in line with the provisions of Sec.2(14)(iii), it shows that the nearest Taluk being Chinglepet Taluk Kancheepuram District and the village Taiyur shows that a population of only 7609 and the distance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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