TaxTMI 
TaxTMI 
2013 (11) TMI 1591
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....al. However the crux of the issue is that "ld. CIT(A) had erred in directing the AO to delete the addition of Rs. 21,32,000/- made on account of sale of agricultural land by holding that the impugned transaction cannot be categorized as adventure in the nature of trade or business. 3. The brief facts of the case is that the assessee is an individual, filed his return of income for the assessment year 2009-10 on 31.03.11 admitting income of Rs. 5,82,750/- and the return was processed under section 143(1) of the Act. Subsequently, by AIR information it was revealed that the assessee had made cash deposit of Rs. 27,79,400/- in his savings bank account,. Therefore, the case was selected for scrutiny for assessment and order under section 143....
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.... and therefore, it cannot be construed that the assessee has sold the land to the promoter of the residential plots. (f) Sale deed of all the plots of the land sold was executed by the assessee. (g) In these sale deeds executed, there was no mention of the sale agreement made between the promoter of the residential land and the assessee. (h) All the plots sold were vacant residential plot of lands, which were sold by the assessee in his individual capacity. 5. When this issue emerged before the ld. CIT(A), ld. CIT(A) deleted the addition for Rs. 21,32,000/- by holding that the land sold was agricultural land, which is exempt by virtue of section 2(14)(iii) of the Act by observing as under:- "5. I have gone t....
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....le of agricultural lands in categorizing as adventure in the nature of trade. The land was not developed or converted into plots by the appellant. The agricultural land was inherited as gift which was sold in plots by the agreement holder and hence it is neither business nor adventure in the nature of trade. For trade/business there should be purchase and sale and not otherwise and an isolated transaction cannot be termed as business as was decided in several case laws relied upon by the AR of the appellant mentioned in para 6.5 respectfully the following the above case laws mentioned supra that the above transaction is treated as sale of agricultural land and not a transactions which can be categorized as adventure in the nature of trade o....
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....assessee is not liable to capital gain tax. 9. We have heard both the parties and carefully perused the materials on record. After analyzing the issue, we find the following facts emerge and the same is not disputed:- (1) The assessee has acquired the land by a will from his maternal grand -mother. Thus, the assessee is a legal and rightful owner of the land. (2) The land in question is an agricultural land, which falls outside eight Kms from the nearest panchayat, and the same is not disputed. (3) In order to obtain the maximum revenue from the sale of the land, the assessee had entered into an agreement with a layout promoter of residential land on the following terms and conditions:- (i) The layout will be plotted by....