Land transaction taxability and development agreement issues remanded for fresh factual inquiry and de novo assessment.

Conflicting findings on the basic character of the land and the nature of the transaction meant the taxability of the land sale could not be finally determined on the existing record. Additional evidence on agricultural character had been filed, and the development agreement and advance received under it had not been properly examined. A fresh factual inquiry was therefore required to determine the nature of the land at the time of sale and the effect of the development arrangement. The matter was remanded to the Assessing Officer for de novo consideration after examining the additional evidence and the development agreement.

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Issues: Whether the matter concerning the taxability of the land transaction and the related disallowance of development expenses required restoration to the Assessing Officer for fresh adjudication.

Analysis: The record showed conflicting findings in the first appellate order on the basic character of the land and the nature of the transaction. The material placed before the Tribunal also indicated that the assessee had filed additional evidence regarding agricultural character, while the fate of the development agreement and the advance received under it had not been properly examined. In these circumstances, a fresh factual inquiry was necessary to determine the nature of the land at the time of sale and the effect of the development arrangement.

Conclusion: The matter was remanded to the Assessing Officer for de novo consideration after examining the additional evidence and the development agreement.

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