TaxTMI 
TaxTMI 
2016 (6) TMI 550
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....vant to the Assessment Year 2011-12, the assessee received an amount of Rs. 90,61 ,029/- on acquisition of 12.50 Ares (30 cents of land) in Sy.No.30/13, LAC NO.26/09 after deducting the TDS of RS.1 0,37, 128/-. The above land along with adjoining land was compulsorily acquired for the public purpose by the Cochin Corporation. The land was acquired under the Land Acquisition Act 1984 (Central Act 1/1894) for the implementation of Brahmapuram Waste Plant Project. The acquisition was from Financial Years 2008-09 to 2010-11 along with properties of about 90 other families. 3.1. In the course of assessment proceedings, it was contended that the land in question was agricultural land and the amount received as compensation is not liable for capi....
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....nly the agricultural land that was acquired and hence in those years the same was treated as, agricultural land only. However, in this year the land acquired consisted of a building, a cattle shed, a well, a pump house septic tank, compound wall etc., and hence AO took a view that the whole cannot be treated as agricultural land and treated only 1/3rd of such land as agricultural. It is seen from the certificate from Village Officer that the land has been certified as agricultural land. But at the same time the certificate of land Acquisition Officer shows that the land is "dry land" and hence no agricultural activities could have been carried out on this land. The Special Tahsildar (LA}, Corporation of Cochln vide Award No. LAC 26/2009 dat....
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....eal before us. The ld counsel for the assessee reiterated the submissions made before the Income Tax Authorities. On the other hand, the ld DR supported the orders of the AO and the CIT(A). 6 We have heard the rival submissions and perused the material on record. Section 2(14) (iii) excludes agricultural land from the purview of the "Capital Asset". Clause (iii) to sec. 2(14) read as follows: "(iii) Agricultural land in India, not being land situate - (a) in any area which is comprised within the jurisdiction of a municipality or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year ....
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....pose of Cochin Corporation for implementation of Brahmapuram Waste Plant Project (Page No.13in the paper book). It is also stated that in the above land, the assessee has cultivated crops like, banana, coffee, tapioca, arecanut tree, nutmeg, pepper, etc. The land was always agricultural land as per the village record. Certificate is also produced to show that the assessee was contributing for Kerala Agricultural Workers Welfare Fund Board in respect of the wages paid to the agricultural workers. (Page No.14 in the paper book). III. The assessee also produced extracts from the village records to substantiate the claim that the land was 'Nilam' (wet land) and purayidam referring to the house situated therein. IV. Certificate of valu....
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....ittee, town committee or by any other name) or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year; or (B) In any area within such distance, not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in item (A), as the Central Government may, having regard to the extent of, and scope for, urbanization of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette". 6.3 In view of the above definition of agricultural income for the purpose of assessment to agricultural income tax, inco....