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2016 (8) TMI 1038 - AT - Income TaxRe-opening of assessment u/s.147 - Held that:- The reassessment proceedings have rightly been initiated after forming opinion that some income chargeable to tax as escaped assessment u/s.147 of the Act, after amendment to sec.147 of the Act with effect from 01.04.1989, wide power has been given to the AO, even to reopen the cases where the assessee has fully disclosed material facts. The only condition for reassessment is that the AO should have reasoned to believe that income chargeable to tax had escapement. Such belief can be reached in any manner and is not quantified by precondition of full and true disclosure of material facts by the assessee as contemplated in the pre-amended section 147(a) of the Act. In the instant case, AO reopened the assessment, after recording reasons mentioned hereinabove in para-3.1 of this order. As such in our opinion, there is no infirmity in the order of Ld.CIT(A) and the same is confirmed. This ground of assessee is rejected. Treatment of sale of agricultural land as income from business - Held that:- In this case, the assessee had no record of carrying on agricultural operations. The size of the land also suggests that it was not intended to carry on agricultural operations. The assessee is engaged in trading PVC Flex Sheets, SS Coils & Other Trading, Finance, Derivatives which throws light on the intention of the parties for the purpose of trading or investment. There is no evidence on record to suggest that the said purchase of land was to enjoy the 'pride of possession' of agriculture, which are some of the factors enumerated by the apex Court to facilitate a judicial body to analyse the nature of transaction of sale. At any rate, as against the contention of the assessee that the property was retained for investment, the fact remains that it was sold within short time. Thus, the attendant circumstances of the case, the process of purchase of land jointly, and also sale of purchased land jointly, compel us to come to the conclusion that the purchase of land, in itself, was with an intention to sell at a profit in the form of an 'adventure in the nature of trade' and hence though it is an isolated transaction the income thereon can still be considered as business income. - Decided against assessee
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