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2018 (10) TMI 1110 - AT - Income TaxProfit earned on sale of agricultural land - Taxing the gain arising on transfer of agricultural land as claimed as exempt - lower authorities for treating profit on sale of plot of land as business income - Held that:- From the record we found that six plots of agriculture land was bought by the assessee with eight other persons. These plots of land were held for lease by owner and thereafter sold and profit accruing there on was claimed as exempt being income from sale of agricultural land. After analyzing the factual position, the lower authorities reached to the conclusion that intention of the assessee was to earn profit rather than investing in the agricultural land to be used for agricultural purposes. Assessee was not at all interested in carrying out any agricultural activity. If it all in case that intention of assessee was to embark on a venture in the nature of trade as distinguished from a capital investment. CIT(A) has discussed the various judicial pronouncements and also the criteria laid down in case of Mahaveer Enterprises [1997 (4) TMI 21 - RAJASTHAN HIGH COURT] to the facts of the instant case and reached to the conclusion that assessee alongwith 8 other persons entered into transaction for sale and purchase of land. Intention was not to carry out any agricultural activity as because sale was carried out barely within few months of the acquisition. CIT(A) also observed that area of land located is being developed for the purpose of Holiday Homes, Farm houses located near to Karjat. The detailed findings so recorded by lower authorities by applying various judicial pronouncements have not been controverted by bringing any positive material on record. Accordingly, we do not find any reason to interfere in the order of lower authorities for treating profit on sale of plot of land as business income. - decided against assessee.
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