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2016 (11) TMI 1500 - AT - Income TaxGain from the sale of agricultural land - addition as adventure in the nature of trade - Held that:- We find that the land in question was never treated as a stock in trade and it was treated as capital asset in the books of account of the assessee. We find that there was no systematic or repetitive buying or selling of land which could indicate an adventure in the nature of trade. we noticed that the assessee has not obtained any permission for conversion of said agricultural land to non-agricultural land and he has sold the same agricultural land to the persons who was also an agriculturalist. The assessing officer has not disproved the facts that said agricultural land was shown as a fixed asset in books of account of the assessee and agricultural operation were carried out by the assessee. The assessing officer has also not disproved the fact that 7/12 and 8A of agricultural land reflects that the crops were taken on the said agricultural land. Considering the above stated facts and legal findings we observed that the assessing officer has not proved with relevant supporting evidences that the sale of agricultural land was an adventure in the nature of trade, therefore, we are not inclined to uphold the order of the Ld.CIT(A). - Decided in favour of assessee.
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