Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (9) TMI 568 - AT - Income TaxAddition u/s 56(2)(vii)(b)(ii) - difference between the stamp duty value and purchase value of agricultural land - purchase of immovable property being a capital asset - agricultural land is very well covered under the term ‘’immovable property’’ and thus falls within the purview of Section 56(2)(vii)(b)(ii) - HELD THAT:- Any property which is not a ‘’capital asset’’ is not covered within the meaning of ‘’movable’’ or ‘’immovable properties’’ u/s 56(2)(vii) of the Act. In the present case, the agricultural land purchased by the assessee is situated at village Mandana, Kota which situated at a distance of 28 KM from Municipal Limits of Kota. Therefore, the agricultural land purchased in the name of the assessee is not a ‘’capital asset’’ as per provisions of Section 2(14) of the Act and it is not covered by the definition of ‘’property’’ given in Explanation to Section 56(2)(vii)(b) of the Act. Thus, we direct the AO to delete the addition. Addition by treating the source of investment in agricultural land to this extent as unexplained - HELD THAT:- Average income from sale of Lehsun per bigha comes to ₹ 30,000/- to 35,000/- i.e. ₹ 9.00 lacs to ₹ 10.00 lacs per annum and similarly the realization from sale of vegetables is ₹ 30,000/- to ₹ 40,000/- per bigha i.e. ₹ 9.00 lacs to ₹ 10.00 lacs per annum. After considering the agriculture expenses and the house hold expenses, the net savings from Lehsun and Vegetables by the assessee is approximately ₹ 10.00 lacs per annum i.e. around ₹ 25,000/- to ₹ 30,000/- per bigha which is quite reasonable. Thus if we consider the income / savings of the assessee for the last 04 years as has been mentioned in the chart w.e.f. for A.Y. 2010-11 to Assessment Year 2013-14 then it comes to approximately ₹ 40.00 lacs and in this way by considering the income from agriculture as has been calculated in the preceding para, the bifurcation of which is ₹ 12,93,243/- from sale of agriculture crop and approximately ₹ 40.00 lacs from the sale of Lehsun and Vegetables for the last 04 years which is quite sufficient and fully explain the source of investment in the purchase of agricultural land. Assessee has fully proved on record the source of investment in the purchase of agricultural land - we direct the AO to delete the addition. - Decided in favour of assessee.
|