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2019 (2) TMI 707 - AT - Income TaxExemption u/s.54B - whether the land transferred by the assessee was non-agricultural land, there can be no grant of exemption u/s.54B of the Act - whether or not the land transferred by the assessee was an agricultural land? - Held that:- On a cumulative consideration of all the relevant factors prevailing in the instant case, both for and against the treatment of land transferred by the assessee as agricultural land, we have no hesitation in holding that the assessee transferred 'agricultural land’ to Mr. Dhanraj Malchand Rati. It is so for the reason that the land was classified as “agricultural land” in land revenue records; subjected to land revenue; was being cultivated on which “Jowar crop” was grown. Reliance placed by the ld. DR on a Tribunal order dated 27.5.2015 passed in the case of Abhijit Subhash Gaikwad [2015 (5) TMI 971 - ITAT PUNE] is misplaced in as much as the Tribunal returned a categorical finding in that case that the concerned Talathi had stated : “that the land was never used for agricultural activity”. This position is contrary to the extant case. Here the concerned Talathi of the land transferred by the assessee has certified in the 7/12 extract that the “Jowar Crop” was grown on the land in last four years in line. It is, therefore, held that the land transferred by the assessee was an “agricultural land” and the capital gain arising from such land is eligible for exemption u/s.54B. We, therefore, overturn the impugned order on this issue and uphold the assessee’s point of view. Treatment of agricultural income as “income from other sources” - Held that:- We have held in earlier paras of this order that the land transferred by the assessee was an agricultural land on which jowar crop was raised. However, in order to claim exemption for a particular sum as an agricultural income, it is sine qua non for the assessee to prove the quantum of agricultural income claimed with relevant evidence. Existence and quantum of agricultural income are two separate things. AR fairly conceded that no formal sale of crop receipts were available as the “Jowar crop” was sold directly without routing it through commission agents. In view of the foregoing and in the absence of direct evidence of quantum of income, we estimate the existence of agricultural income in the peculiar facts of this case at half of the amount declared at ₹ 56,000/- and the remaining half is held to be “Income from other sources”.
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