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2020 (10) TMI 38 - HC - Income TaxNature of land sold - capital asset or agricultural land - Whether Tribunal was right in holding that the capital assets viz., vacant land sold by the Assessee was agricultural land as defined u/s 2(14)(iii) of the Income Tax Act especially when no agricultural operations was done by the Assessee prior to the sale and the assessee had obtained permission for converting the lands from agriculture use to non agriculture use prior to the date of the sale? - HELD THAT:- When the correctness of the order of CITA was tested before the Tribunal, once again, the Tribunal made a factual exercise and found that agricultural activities were carried out in the land, there were standing banana crops as well as coconut trees etc., Furthermore, from the revenue records, which were placed before the Tribunal in the form of paper book by the assessees, the Tribunal had recorded a finding of fact that the lands, which was sold were indeed agricultural lands. Furthermore, it is relevant to note that the lands, which are subject matter of consideration are situated 40 Kms away from Thiruvallur Municipality and 30 Kms away from Madhavaram Municipality. Furthermore, the Village Administrative Officer had certified on 01.12.2008, i.e., prior to execution of sale deed that the assessees and their family members were using the land for agricultural purposes. Furthermore, the President of Andal Kuppam Panchayat within whose limits the land is situated, has certified that the assessees and their family members are using the lands for cultivation of paddi, sugarcanes, ground nuts, mango and coconut etc., and the land, as mentioned in the sale deed has to be construed as 'unbuilt land', but not 'non-agricultural land'. This document was placed before the assessing officer. Furthermore, the statements of neighbouring land owners were also available before the assessing officer. Therefore, on facts, the first appellate authority as well as the Tribunal has correctly concluded in favour of the assessee. CITA applied the test laid down by the Hon'ble Supreme Court in Smt.Sarifabibi Mohmed Ibrahim [1993 (9) TMI 10 - SUPREME COURT] found that the majority of the test were answered in favour of the assessees - Substantial questions of law are answered against the revenue.
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