TMI Blog2022 (1) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... as CIT(A), the assessee categorically stated that land is situated on the bank of river Mindhola, which area is affected by very high salinity and regular crop of sugarcane or other trees are not possible. The assessee used the land for cultivatation and growing of Grass which is not affected by floods. We find that in the documentary evidences furnished by the assessee the nature of land is clearly mentioned as agriculture use. AO has not made any investigation on the assertion of assessee. AO presumed that growing of grass is not agriculture activities. We noted that the AO arrived on conclusion on the basis of his presumption that Grass is not agriculture product. AO has not brought any adverse evidence to counter the evidence furn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her relief(s) to which the appellant may be lawfully entitled to. 2. Brief facts of the case as extracted from the orders of lower authorities are that during the assessment, the AO noted that the assessee sold her 1/3rd share in piece of agricultural land situated within the limits of Village Kansad. The assessee acquired the said land in 2007. The assessee invested the entire sale consideration in purchased of other agricultural land and claimed exemption under section 54B of the Act. On perusal of the record, the Assessing Officer (AO) was of the view that assessee failed to fulfil certain conditions laid down in section 54B of the Act. The crop shown in 7/12 extract in the said land Ghass . On the basis of recorded entry in 7/12 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. The reply of the assessee was not accepted by the AO. The AO took his view that the assessee has not carried out any agricultural activities in the last three years and the Grass is naturally grown in the land and that the assessee has not earned any agricultural income from such activities. Accordingly the AO denied exemption under section 54B while passing the assessment order. 3. On appeal before the ld. CIT(A), the action of AO was upheld. The ld.CIT(A) while upholding the order of AO held that the primary evidence for determining whether land is used for agricultural purpose, is the land revenue record extract or From 7/12. In Form- 7/12 Ghass is shown to have grown in land, which leaves the issue opens for interpretation by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce cannot be brushed aside by mere presumptions as presumed by AO. The fact that assessee sold agricultural land is clearly mentioned in the sale deed executed by the assessee along with other co-owner, copy of sale deed dated 08.11.2012 is also placed on record. Further this fact is strengthening by the evidence that while purchasing the land the assessee purchased the land as agriculture land and its user remained unchanged. 5. On the other hand, the ld.Sr.DR for the Revenue supported the order of the ld. CIT(A). The ld.Sr.DR submits that assessee failed to submit substantiate the fact before the Lower Authorities that the land in dispute was used for agricultural purposes in preceding years by the assessee. The assessee has not shown ..... X X X X Extracts X X X X X X X X Extracts X X X X
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