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2011 (8) TMI 1135 - AT - Income TaxNature of land sold - Held that:- In view of the overwhelming evidence produced by the assessee before the Assessing Officer are enough to come to a definite conclusion that this land was beyond 8 kms. From the Tambaram Municipal limits. The definition of a ‘capital asset’ given in section 2(14) of the Act excludes an agricultural land from its ambit if it is situated beyond 8 kms. from the Municipal limits. It cannot be said that no agricultural activities were being carried out on this land before sale. Moreover, as stated above, the Assessing Officer has himself accepted in substance, that agricultural activities were being carried on now and then. The fact that the assessee was showing agricultural income from this land further fortifies this contention and goes to prove the claim of the assessee. In view of the above facts, we hold that agricultural activities were carried on this land prior to sale and the income shown at ₹ 3 lakhs has to be accepted as agricultural income, as apart from that no finding has been given by the Assessing Officer in this regard.
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