Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (10) TMI 469 - AT - Income TaxValidity of Reassessment proceedings u/s 147 - Agricultural land or short-term capital asset - Revenue contended it to be capital asset and its sale transaction constituting to be ‘an adventure in the nature of trade’ - Held that:- It is a settled legal proposition that, when the claim of exemption/deduction is made, the onus is on the assessee to demonstrate the genuineness of such claim. In present case, location of the land, proximity to the residential zone, fact that assessee sold the property of Rs 1.43 lakhs worth for the sum of Rs 11.11 lakhs in the gap of 27 months of holding period tells about worth of land to earn commercial profits, all goes against the assessee. Further, there is no direct evidence and convincing evidence to demonstrate the existence of agricultural activity on the said land during the holding period. Therefore, CIT(A) rightly held it to be capital asset and moreover short term capital asset on the basis of its holding period. Regarding validity - AO formed an opinion that the “assessee is carrying on the business of purchase and sale of agricultural land and therefore the activity is an adventure in the nature of trade or business and income from the same is taxable as business income - Held that:- AO has rightly formed requisite believe or reason to believe that the income has escaped assessment for the A.Y. 2000-01 - Decided in favor of the revenue
|