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2023 (4) TMI 111 - ITAT VISAKHAPATNAMRevision u/s 263 - treating the capital gains on sale of agricultural lands as short term capital gains - only contention of the Ld. Pr. CIT is that the assessee has purchased the land in Acres and sold the same in Square Yards within a span of one month for a huge consideration - HELD THAT:- Assessee has acted as a intermediary for the purchase and sale of agricultural lands during the impugned assessment year. CIT erred in appreciating the fact that the purchase and sale of land within a span of one month cannot alter the character of the land as established by the assessee. Certificate issued by the Village Revenue Officer, Devarapalli, dated 24/2/2023 has confirmed the land as an agricultural land. There is also no dispute by the Revenue on the consideration received by the assessee. In our considered opinion, since the said lands were entered into the Revenue Records as ‘agricultural lands’ which was not disputed by the Revenue, the gain on sale of land cannot be considered as capital gains for the purpose of the Act. Pr. CIT has not brought on record that the assessee has sought any permission for conversion of the agricultural land to non-agricultural land. Since the character of the land remained as agricultural land both on the date of purchase and on the date of sale, it is a sale of agricultural land and no capital gains arise on the sale of such agricultural land and we therefore have no hesitation to quash the order of the Ld. Pr. CIT on this issue. Accordingly, the appeal of the assessee is allowed.
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