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M/s Synthite Industries Ltd. Versus The Jt Commr of Income Tax Range 4 Kochi

2016 (6) TMI 1246 - ITAT COCHIN

Sale of land - agricultural land or capital asset - nature of land - land converted - Held that:- As in assessee’s own case for the AYs 2007-08 to 2009-10 the admitted fact is that 188 cents of land was sold to various persons and an agreement was entered into for construction of villas. Therefore, it has to be ascertained what happened to the remaining part of the land after its conversion. The fact remains is that entire 512 cents of land was converted into residential plots on the basis of th .....

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Therefore, this Tribunal is of the considered opinion that when the assessee itself claims that the land was converted into non agricultural land as on 19-06-2006 it cannot continue as agricultural land any further. Therefore, the certificate said to be issued by the village officer has no relevance in view of the facts admitted by the assessee. Hence, there is no justification in the claim of the assessee that the land is an agricultural land. - The authorities below are justified in holdin .....

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cation the appeal in ITA No. 192/Coch/2015. 3 Three grounds are raised in this appeal. Ground no.3 is general in nature and no adjudication is called for and hence, the same is dismissed. Ground no.2 is with regard to the addition u/s 14A of the Act. This ground was not pressed by the ld counsel for the assessee in the course of hearing of this appeal and hence the same is dismissed, as not pressed. The surviving sole ground and its sub-grounds read as follow: Ground No.1: i)The ld CIT (A) has e .....

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ead with section 2(14)(iii) 4 The briefly stated the facts of the case are as follows: For the assessment, 2010-11, the assessee company had filed the return of income declaring a total income of ₹ 38,05,78,820/-. In the return of income, profit on sale of land amounting to ₹ 24,26,299/- was claimed as exempt. According to the assessee this land is agricultural land situated outside the municipal limits. The AO, while completing the assessment u/s 143(3) applied provisions of section .....

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04/Coch/2014 and 305/Coch/2014 (order dated 6th Feb 2015). The ld DR present was duly heard. 7 We have heard the rival submissions and perused the material on record. Identical issue was subjected matter of appeal before the Tribunal in assessee s own case for the AYs 2007-08 to 2009-10. The Tribunal, vide its order dated 6.2.2015 (supra) had held that the land in question was not agricultural land and was liable for taxation. The relevant findings of the Tribunal read as under: 5. We have consi .....

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s of land for expansion of the factory. As per this resolution, the land was purchased on 29-03- 2005. Within a period of six months, i.e. on 19-09-2006 another resolution was passed to convert the land into residential plots. Moreover, the Memorandum of Understanding of the company was also amended so as to enable the company to carry on business in real estate. On 27-03-2007 the assessee sold 188 cents of land to various parties and also entered into agreement for construction of building in t .....

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e 3 of the paper, which reads as follows: CERTIFICATE This is to certify that the property lying in Block 45, ResurveyNos.324/1, 324/2, 324/3 & 324/4 of Aikkaranadu North Village,Kadayiruppu Kara held for and on behalf of Synthite Industrial Chemicals Ltd by its Managing Director Mr. C.V. Jacob, S/oVarkey, Nechupadom, Kadayiruppu as per village records 56/6 is agricultural land (Nilam) and that it is being used for agricultural operations. This certificate is issued for producing it before t .....

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006 as extracted by the CIT(A) says that the land was situated at resurvey Nos. 299/4, 324/2, 324/3, 324/5,324/1, 324/6 and 299/2 of Aikkaranadu North village. The village officer certifies only resurvey Nos. 324/1, 324/2, 324/3 & 324/4 belonging to the assessee and it was agricultural land. In respect of land in resurveyNos.299/4, 299/2, 324/5 and 324/6 there is no material available on record to suggest that it was agricultural land. The resurvey Nos. 299/4, 324/5,324/6 and 299/2 are omitt .....

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t is so, it is not known under what capacity the village officer issued the certificate saying that the land belongs to the assessee company and it was agricultural land used for agricultural purpose. The land admittedly was converted into stock in trade by dividing the same into residential plots and the basis of the resolution dated 19-09-2006, i.e. within a period of six months from the date of the purchase. Therefore, the usage and purpose of the land was converted and changed into non agric .....

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