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of <h1>Land classification crucial for tax assessment; Appeal allowed for re-examination of transactions and tax implications</h1> The appeal was allowed for statistical purposes, and the case was remitted back to the Assessing Officer for a thorough re-examination of the ... Sale of property through power of attorney - transfer u/s 2(47) - sale of agricultural land - HELD THAT:- Assessee entered into an agreement for sale on 04.05.2012 with Shri V.R. Anbuvelrajan and Shri S. Balamurugan. The assessee did not execute any sale deed. Subsequently, in the year 2013, the assessee executed power of attorney in favour of the said Shri V.R. Anbuvelrajan and Shri S. Balamurugan. The assessee claims that the physical possession of the property was handed over to Shri V.R. Anbuvelrajan and Shri S. Balamurugan and entire sale consideration was also received from them. However, it appears no sale deed was executed by the assessee in favour of the said Shri V.R. Anbuvelrajan and Shri S. Balamurugan. The assessee claims that the sale was completed when the assessee entered into agreement for sale with Shri V.R. Anbuvelrajan and Shri S. Balamurugan and received the entire consideration after handing over the physical possession of the property. On the strength of the power of attorney executed by the assessee in favour of Shri V.R. Anbuvelrajan and Shri S. Balamurugan, they sold the property for higher consideration. Therefore, it is obvious that as claimed by the assessee, there are two different transactions. One transaction is between the assessee and Shri V.R. Anbuvelrajan & Shri S. Balamurugan. The other transaction is between Shri V.R. Anbuvelrajan & Shri S. Balamurugan with M/s Jacaranda Properties Pvt. Ltd. These two transactions have to be brought for taxation in the respective hands. These facts were not examined by the Assessing Officer. Therefore, the orders of both the authorities below are set aside and the entire issue is remitted back to the file of the Assessing Officer. - Appeal filed by the assessee is allowed for statistical purposes. Issues:Transfer of agricultural land for taxation, assessment year 2014-15, validity of transaction, examination of sale of property by third party, remittance of matter to Assessing Officer.Analysis:1. Transfer of Agricultural Land: The appellant entered into an agreement for the sale of agricultural land and received the entire sale consideration from the buyers, handing over physical possession. The appellant claims the transfer took place at the time of agreement, asserting the land is not liable for taxation due to its agricultural nature.2. Validity of Transaction: The Departmental Representative highlighted that the initial sale of the property by the appellant to the buyers was not examined by the Assessing Officer. The subsequent sale of the property by the buyers to a third party for a higher consideration raises questions about the validity and tax implications of the transactions involved.3. Examination of Sale by Third Party: The Tribunal noted that the subsequent sale of the property by the buyers to a third party for a higher amount indicates two distinct transactions: one between the appellant and the buyers, and another between the buyers and the third party. The Assessing Officer was directed to re-examine these transactions and determine the tax implications for each party involved.4. Remittance to Assessing Officer: The Tribunal set aside the orders of the lower authorities and remitted the entire issue back to the Assessing Officer for a fresh examination. The Assessing Officer was instructed to consider all relevant material presented by the appellant and decide the matter in accordance with the law, ensuring a fair opportunity for the appellant to present their case.5. Verification of Agricultural Land: The Tribunal directed the Assessing Officer to verify whether the land in question qualifies as agricultural land, emphasizing the importance of determining the nature of the property for tax assessment purposes.In conclusion, the appeal was allowed for statistical purposes, and the matter was remitted back to the Assessing Officer for a thorough re-examination of the transactions, tax implications, and the nature of the land involved. The judgment highlighted the need for a comprehensive review to ensure a fair and accurate determination of the tax liabilities related to the transfer of the agricultural land.
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