Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 60 - AT - Income TaxIncome from other sources u/s 56(2)(vii)(b) - adopted the fair market value of the property as determined by the stamp duty authority and made addition to the extent of assessee’s share in the land - AR submitted that the provision of section 56(2)(vii)(b) of the Act are not attracted as agriculture land does not fall within the definition of ‘capital assets’ - whether the agriculture land falls within the meaning of ‘property’ as defined in Explanation to section 56(2)(vii) of the Act? - HELD THAT:- A bare perusal of the definition of property shows that it is an inclusive definition. The expression ‘property’ includes capital asset of the assessee. The term ‘capital asset’ has been defined under section 2(14) of the Act. The capital asset does not include agriculture land, however, there are certain exceptions to it. In the present case, we find that the assessee has not brought any evidence to show that the agricultural land purchased with other co purchasers does not fall within the exceptions as specified in definition of ‘agricultural land’ under section 2(14) of the Act. Even the AO has not made any effort to examine whether the agricultural land in question falls within the exception as specified under section 2(14) We find that in the case of Prem Chand Vs. ACIT [2020 (7) TMI 188 - ITAT JAIPUR]held that per se the agriculture land does not fall within the definition of ‘property’ as defined in Explanation to Section 56(2)(vii) of the Act. The Tribunal referred the issue back to the file of AO to examine whether the land in question falls under any of the exceptions provided in section 2(14). AR during the course of his submission stated that in case the issue is restored back to the AO for determination of the fact, that the agriculture land falls under exception or not, and in case the agriculture land purchased by the assessee falls within the definition of the capital asset and consequently, the provisions of Section 56(2)(vii) of the Act are attracted, then the AO may be directed to refer the valuation of land to the DVO. We have considered the contentions of the assessee, liberty is granted to the assessee to make a requisite application before the AO to refer valuation of land in question to DVO in case the agricultural land falls within the ambit of definition of property under section 56(2)(vii) of the Act. Appeal of the assessee is party allowed for statistical purposes
|