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2013 (11) TMI 1591 - AT - Income TaxAddition made on account of sale of agricultural land by holding that the impugned transaction cannot be categorized as adventure in the nature of trade or business - Held that:- The assessee had entered into an agreement with the promoter of the land, who has expertise in the business of developing and marketing residential plots, to market his land, in order to realize maximum sale consideration for the sale of his agricultural land. By virtue of the agreement, the assessee has agreed to sell his agricultural land to the promoter at a cost of ₹ 30 lakhs by agreeing to certain conditions laid down by the promoter to suit his business requirements. The actual business of developing and marketing the land is conducted by the developer and the profit from the same is realized by him. The assessee's stake in the entire transaction is only the sale consideration of his agricultural land for ₹ 30 lakhs. Once the amount of ₹ 30 lakhs is received by the assessee, balance entire sale consideration of the remaining land will be appropriated by the promoter. In these circumstances, the assessee's role in the whole transaction is only that of a seller of the agricultural land and for realizing his sale consideration of ₹ 30 lakhs. Therefore, we are of the considered view that the assessee has only sold his agricultural land at a sale consideration of ₹ 30 lakhs which is not liable to capital gain tax because the land in question is not a capital asset by virtue of section sec.2(14)(iii) of the Act. Hence, we do not find any hesitation to confirm the order of the ld. CIT(A) and also the views expressed by him in his order. Accordingly this appeal is held against the Revenue
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