9911796707
TMI Blog2017 (7) TMI 690X X X X Extracts X X X X X X X X Extracts X X X X ..... om RBI apart from interest income earned from bank accounts. He had filed his return of income declaring total income at Rs. 13,73,240/-. In the course of assessment proceedings, the Assessing Officer noticed from the bank statement of Bank of India, Savings Bank A/c No.603110100006432 that assessee had received a sum of Rs. 4,00,000/- through account payee cheque credited into his account on 24.08.2010. He further noticed from statement of assets as on March 31, 2009 submitted during the course of assessment proceedings that assessee had declared 'deposit to Green Field Samuhik Sehkari Krishi Samiti Ltd. for allotment of farm house land' amounting to Rs. 40,000/-. The assessee in response to show-cause notice pointed out that he had receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral land beyond municipal limits which is non taxable as the same is not a capital asset." 4. The Assessing Officer treated the sum of Rs. 4 lakh received by the assessee in the capacity of member of Green Field Samuhik Sehkari Krishi Samiti Ltd. as taxable under the head "income from other sources", interalia, observing as under :- "(a) That the income earned by way of compensation in no way qualifies as Capital Gain in view of the clear failure on the part of the assessee to establish that valid transfer of assets has been taken place and valid execution of sale/purchase/conveyance deed was executed during purchase of land and further during sale of land. (b) That the assessee has failed to prove with sufficient evidence regarding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the assessee :- (i) Purchase deed and sale deed of the sale of the land. (ii) Certificate issue showing the characterization of land. (iii) The certificate of Talati regarding crops grown whether the land is irrigated or not and the income from the land as shown in the land revenue records. (iv) Jantri rates prevailing in the area. (v) Evidences of income arising from agricultural operations in the form of sale bills etc. (vi) Evidences of expenditure having been incurred on agricultural operations by calculating bills of expenditure etc. (vii) Distance of the land from the areas specified in Section 2(14)(iii)(a) & (b) of the I.T. Act. (viii) Any permission has been obtained from the revenue authorities to conv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en used for agricultural purposes during the preceding two years by such individual or a parent of his or by such Hindu Undivided Family." 5. The Assessing Officer, accordingly, included Rs. 3,60,000/- under the head 'income from other sources'. Ld. CIT(A) partly allowed the assessee's appeal, inter-alia, observing as under :- "6. At the appellate stage the appellant reiterated the contentions raised at the assessment stage. There is no dispute that the land owned by the above society was compulsorily acquired. There is not dispute that the appellant was a member of the said society. The land acquired was an agricultural land in the land revenue records. However, no evidence of agricultural operations on the said land or the khasra coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the head other sources." 6. Ld. counsel for the assessee reiterated the submissions made before lower revenue authorities and submitted that the agricultural land was located beyond 8 kilometers from the Nagar Palika Dadri and, therefore, it was an asset exempt from capital gains tax because it did not come within the definition of capital asset. To support his contentions, he referred to page 59 of the Memorandum of Green Field Samuhik Sehkari Krishi Samiti Ltd. to demonstrate that it was carrying on agricultural activity. He submitted that since the assessee had received the compensation being member of society, therefore, the nature of receipt in the hands of the assessee remained the same as was in the hands of society and it cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
