TaxTMI 
TaxTMI 
2016 (3) TMI 744
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.... assessment year 2012-13. We heard both the appeals together and disposing of the same by this common order. 2. Dr. Milind Madhukar Bhusari, the Ld. Departmental Representative, submitted that the assessee-company sold agricultural land measuring 15.14 acres at Keezhakottaiyur and Mambakkam Village for a total consideration of Rs. 56,24,95,297/- to M/s Smart Value Homes Limited, Mumbai. The assessee claimed the profit on sale of the land as exempt under Section 2(14) of the Income-tax Act, 1961 (in short 'the Act'). By considering the exorbitant price for which the land was sold, and the buyer being a person who deals in real estate, the Assessing Officer found that the gain arising out of the sale of the land cannot be treated a....
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.... Officer is that the assessee sold the land at an exorbitant rate and the purchaser is a real estate dealer. Placing reliance on the judgment of Madras High Court in Sri M.S. Srinivasa Naickar (supra), the Ld. representative submitted that on identical set of facts, the Madras High Court examined the issue. The case before the Madras High Court is that the assessee cultivated the land; the adangal register showed that the land was agricultural land wherein the assessee carried on agricultural operation till the date of sale of the land. The purchaser applied for conversion of the land into industrial plot. Therefore, the Assessing Officer found that the land in question was agricultural only. Since the intention of the purchaser is to conve....
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....submitted that the amount of income to which the provisions of Section 10 of the Act applies, if any such amount is credited to the Profit & Loss account, shall be reduced from the book profit for the purpose of Section 115JB of the Act. Referring to Section 10(1) of the Act, the Ld. representative submitted that in computing the total income of a previous year of any person, agricultural income shall not be included therein. Referring to the copy of circular issued by CBDT in No.550 dated 1st January. 1990, a copy of which is available at page 59 of the paper-book, the Ld. representative submitted that capital gains arising from the transfer of the agricultural land will not constitute "revenue" within the meaning of Section 2(1A)(a) of th....
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....real estate dealer. Therefore, the Assessing Officer rejected the claim of the assessee for exemption as agricultural income. The fact that the land is classified as agricultural land is not in dispute. It is also not in dispute that the assessee has returned agricultural income year after year. The adangal extract, which is available at pages 29 to 34 of the paperbook, clearly shows that the land in question was subjected to agricultural operation. Therefore, it was obvious that the land is an agricultural land. Therefore, the profit arising out of such land has to be treated as agricultural income as found by the Apex Court in Singhai Rakesh Kumar (supra) and All India Tea and Trading Co. Ltd. (supra) which was followed by the decision of....