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2020 (12) TMI 782 - HC - Income TaxExemption u/s 10(1) - profit arising on sale for a land on the ground that the land, which was sold was agricultural land - Tribunal reversed the order passed by the CIT-A, who confirmed the order of assessment only on the ground that the lands were shown as agricultural lands in the revenue record during the relevant period and therefore, would not fall within the purview of the definition of 'capital asset' under the Act - HELD THAT:- In the instant case, nothing was brought on record by the assessee to establish that the agricultural operations were carried on prior to his purchase and after purchase. Conduct of the assessee in selling the property within a short period of one year and the property being used to develop the SEZ ought to have taken note of by the Tribunal while deciding the character of the land, as mere classification of the land in the revenue record, as agricultural land, does not conclusively prove that the nature of the land is an agricultural land. Lands were transferred to non-agriculturists for non-agricultural purpose and this would also be one of the relevant factors to test the case of the assessee. The Tribunal relied on the decision in the case of M.S.Srinivasa Naicker [2007 (1) TMI 149 - MADRAS HIGH COURT] the said Judgment could not have been applied to the case on hand because in the said decision on examining the facts and as admitted by the revenue, on the date of sale, agricultural operations were carried on in the lands, which is not so in the case of the assessee. Thus, for all the above reasons, we find that the Tribunal erred in interfering the order passed by the CIT[A] affirming the order of assessment dated 14.03.2014. - Decided in favour of the revenue
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