TMI Blog2016 (6) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... reason of his connection with the land is living. The entire land of 30 cents retains the character of the agricultural land. The assessee is actually cultivating the land with agricultural crops. The land is not within the notified area and admittedly within a Panchayat far away from the notified areas in Cochin Corporation as per Notification No. SO 10/6.1.1994. The assessing officer himself admits that 1/3rd of the land could be regarded as agricultural land. The existence of well, septic tank, compound wall, cattle shed, pump house, a small house etc., would not make any difference to nature of land being agricultural in nature. The assessee had also declared agriculture income and the same have been accepted in the asst. order. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment proceedings, it was contended that the land in question was agricultural land and the amount received as compensation is not liable for capital gain tax. The claim was partially accepted by the Assessing Officer. The Assessing Officer was of the view that the agricultural land was exempt from the definition of Capital Asset u/s 2(14)(iii), but not building and land appurtenant thereto. According to the AO, the 30 cents of land acquired consisted of a residential building with the plinth area of 1200 sq. feet, a cattle shed, a well, a pump house, septic tank, compound wall etc., and it would be fair and reasonable to hold that out of 30 cents of land, 20 cents of land was required to accommodate the above structures. The Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence no agricultural activities could have been carried out on this land. The Special Tahsildar (LA}, Corporation of Cochln vide Award No. LAC 26/2009 dated 02.08.2010 certified that the land has been classified as dry land having a building, a cattle shed, a wall, a pump house septic tank, compound wall etc. located wit in this land. The Land Acquisition Officer has also given the list of trees available on this land and it is seen that these are old trees of coconut, areca nut trees teakwood, Mahagani tree, Mango trees for which not much maintenance is required. In any case the assessee has only shown an agricultural income of ₹ 50,OOOI- from the produce of these trees whose value has been assessed at ₹ 49,400/- by the Land Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opulation of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year (b) in any area within such distance, not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to item (a), as the Central Government may, having regard to the extent of, and scope for, urbanization of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette. The above two categories of land are excluded from the purview of agricultural land. 6.1 The existence of residential house, well, septic tank, compound wall, cattle shed, pump house, crops, trees, etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed extracts from the village records to substantiate the claim that the land was 'Nilam' (wet land) and purayidam referring to the house situated therein. IV. Certificate of valuation of Cochin Corporation estimating the value of improvements certified by the Town Planning Officer, Cochin Corporation was produced.(Page No.38) V A copy of the notice dated 13.1.2014 issued by the assessing officer along with reply dated 24.1.2014 submitted by the assessee are also produced in the paper book.(Page No.42) 6.2 Sec.2(1A) which defines agricultural income. As per Clause-(c) of Sub Clause-(1A) of Sec.2- (c) any income derived from any building owned and occupied by the receiver of the rent or revenue of any such land, or occupi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other relevant considerations, specify in this behalf by notification in the Official Gazette . 6.3 In view of the above definition of agricultural income for the purpose of assessment to agricultural income tax, income derived from any building owned and occupied by the receiver of the rent or revenue of any such land is also regarded as agricultural income under the Act. Such building should be on or in the immediate vicinity of the land and is occupied by the owner by reason of his connection with the land and is required by him for his dwelling house or as a store house or other out building. All these qualifications are satisfied in the case of the house where the assessee by reason of his connection with the land is living. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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