Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 341 - AT - Income TaxSale of land - nature of land - authorities below justification in treating the agricultural land as business asset - use of land - Held that:- It is decided proposition of law that the use of land for agricultural activities is not a relevant factor for determining the nature of land as Agricultural in nature. However, the fact cultivation of medicinal plants on the land suggests the intention of the assessee. In this case, assessee gave the required details on the purchase and sale transaction, details of the buyer, details of the 7/12 extracts showing the details of crop grown (medicinal plants) in the said lands, details of original intention to use the said land for growing the medicinal plants, reasons for sale etc., whereas the Assessing Officer merely disbelieved the assessee and Assessing Officer does not bring any iota of evidence to the records to substantiate his disbelief. In our view, the onus has shifted to the side of the Revenue/Assessing Officer. It is settled legal proposition in law that, for holding a particular transaction as an ‘Adventure in the nature of Trade’, the intention of the assessee at the time of purchase of land is a crucial factor. Subsequent genesis of intention, which led to the sale transfer of land, does not help the Assessing Officer to hold a particular transaction as the transaction as an “Adventure in the nature of Trade’. It is the case of genesis of intention to trade the asset subsequent to the timing of purchase of land. Therefore, we are of the opinion, despite the assessee’s background as businessman, this particular transaction is outside the scope of an ‘Adventure in the nature of Trade. Thus, the core issue raised by the assessee in the appeal stand allowed in favour of the assessee.
|