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2018 (1) TMI 927 - AT - Income TaxApplicability of sec 50C - DR contends that AO had rightly invoked Section 50C before making the impugned short term capital gains addition - income derived from sale agricultural land - Held that:- We find no merit in the instant argument. It has come on record that the assessee’s share in the land in question is only to the extent of 1/10th. The department itself has assessed the remaining two co-sharers namely Smt. Kalaben N. Patel (8%) and Shri Devang Dineshbhai Shah(10%) to have derived business income from plotting the relevant capital asset in question. There is no distinction on facts pointed out at the Revenue’s behest in assessee’s case vis-à-vis above two remaining co-sharers. This tribunal in case of Jayantibhai C. Patel (2011 (12) TMI 691 - ITAT AHMEDABAD) admittedly holds that income derived from sale agricultural land after its conversion to a non-agricultural parcel amounts to an adventure in the nature of business and trade resulting in business income. It has further come on record that the instant assessee had entered into an MOU(supra) with the developer in question. We affirm CIT(A)’s findings under challenge treating the assessee to have derived business income instead of capital gains. Learned Departmental Representative fails to dispute that the Section 50C of the Act does not apply in the instant case. We therefore see no reason to accept Revenue’s grievance pleaded in the instant appeal.
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