TaxTMI 
TaxTMI 
2015 (10) TMI 2469
X X X X Extracts X X X X
X X X X Extracts X X X X
....2. The assessee is an individual and filed his return of income declaring a total income of Rs. 24,69,360/-. The assessee had let out a property having an extent of 400 Sq. Ft., for a monthly rent of Rs. 20,000/- and accordingly computed the income from house property. The AO made market enquiries and determined the annual letting value at Rs. 6,89,325/- and accordingly enhanced the income from house property. The assessee had sold two plots during the year under consideration and declared long term capital gain thereon at Rs. 10,34,353/-. The assessee had also sold one more plot along with super structure constructed thereon and declared short term capital gain thereon at Rs. 7,57,668/-. The AO noticed that the assessee had purchased these....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nly reason cited by the assessing officer was that the assessee did not carry on agricultural activities, though the plots have been purchased as agricultural lands. Further the AO has noticed that the assessee has carried out certain construction on a plot and sold the same. With these observations, the AO has come to the conclusion that the intention of the assessee was to act as trader in plots and not to act as investor. We notice that the Ld CIT(A) has also confirmed the order of the AO accepting the reasoning given by him. 5. We have noticed earlier that the AO has considered the fact that the assessee did not carry on any agricultural activity. In our view, the absence of agricultural activity cannot be considered to be the s....