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2017 (12) TMI 529 - AT - Income TaxDetermination of nature of income derived on sale of land - profit on sale of land to be assessed as business income or under the head capital gain - Held that:- The only reason adopted by the Revenue for treating all these persons as traders was that they have earned profit on sale of their land which is more than 800 times than ordinary profit in this year. In our opinion, it is one of the corroborative factors amongst other. This transaction might be boon because of their geographical location of the land near to power plant. It was not a case that they have anticipated many fold rise of agriculture land price, and therefore, ventured into trade. Apart from the above, the ld.CIT(A) has observed that land was not used for agriculture purpose. This observation was made without any foundation and by merely referring the case of Shri Amitabh Bachhan. It is pertinent to mention that in the land revenue record it was mentioned as agriculture land. The record is per se admissible in evidence. It can be rebutted but by producing evidence and not by general remarks that Shri Amitabh Bacchan was also stated to be farmer. There should be spot inquiry. Presumption of truth is in favour of the record maintained by State revenue official in their official function. Thus, land is to be treated as agriculture land. Therefore, we allow the appeal of the assessee. We direct the AO to treat the profit earned by the assessee on sale of agriculture land as exempt under section 2(14) of the Income Tax Act, 1961. - Decided in favour of assessee.
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