TaxTMI 
TaxTMI 
2016 (11) TMI 1407
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....0/- to M/s East Coast Resorts and Farms (P) Ltd on 12.12.2011. The market value of the property as per the guideline value of SRO was Rs. 11,05,38,000/-. The assessee claimed the entire sale consideration as exempt u/s2(14) as the lands sold were agricultural lands. The assessee claimed that the lands in question were agricultural lands not being capital asset, no capital gains arises on sale . During assessment proceedings, the Assessing Officer found that the assessee acquired the lands during 1985 to 1988 and the assessee has not returned any agricultural income from the assessment year 2006-07 to 2011-12 and hence, the Assessing Officer presumed that the assessee was not carrying on any agricultural operation in the said lands and hence, the lands were not agricultural lands and accordingly, held as capital asset. The Assessing Officer further presumed that since there was huge jump in the value of the lands and the assessee has sold the lands to a real estate developer and not carrying on agricultural activities, the lands in question were not agricultural lands and does not fall under Explanation provided u/s 2(14) of the Act, and accordingly brought to tax the sale considera....
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....ch it is seen that the net agricultural income (after debiting expenses like salary to care-takers etc.) is as follows: Assessment year Net agricultural income 2004-05 Rs.93,675 2005-06 Rs.43,119 2006-07 Rs. 7,310 2007-08 Rs.12,680 2008-09 Rs.35,041 However, between AYs.2009-10 to 2012-13, the appellant claims to have incurred losses from agricultural activities and has shown the same in his capital account as amount transferred to drawings account. Copies of capital account for this period have also been produced and examined. 6.5. The appellant places reliance on the valuation report dated 27.03.2015 submitted by the Departmental Valuation Officer (DVO). A perusal of the said Departmental Valuation Report shows that the details of the plantations seen in the land portion mentions that grown up casuarinas trees, and Chappotte trees are found, along with Mango trees, Coconut trees etc. The report also mentions that a portion of the land was ready for planting vegetables. The same portion of the report also mentions that thatched roof shelters and Mangalore tiled roof shelters meant for farm workers exists in t....
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....the same in the DVO's report and photographs taken by the DVO during the inspection. As mentioned earlier (para 6.7 supra) the conditions laid down in Section 2(14) are also fulfilled as far as distance from nearest Municipality/Municipal Corporation/Cantonment Board is concerned and also with respect to population. The appellant, alongwith the written submission, furnished a copy of the Receipt No. 0144926 dt. 19.3.2014 for the Fasli Years 1413 to 1418 and 1419 to 1420, for Rs. 640/- towards Land Revenue, issued by the % the Village Administrative Officer, Land Revenue, Krishnakaranai village, Chengelpet District. The other factors highlighted by the Assessing Officer i.e. location of the land at ECR, which is a favourite destination of the affluent as a farm house etc., are not relevant, in view of the fact that evidence has been brought on record to prove the carrying on of agricultural activities Hence, the lands in question i.e. 4.91 acres of land at Krishnakaranai village sold by the appellant during the relevant Financial Year, are held to be agricultural lands. The addition made by computing Long Term Capital Gains of Rs. 9,88,56,215/- on acco....
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....Chennai, it is situated in Kanchipuram Districtt, T amil Nadu, located south of the city of Chennai, along the Old Mahabalipuram Road. Navalur is located between Sholinganallur and Siruseri and is around 6 kms. from Sholinganallur and comes under Thirporur taluk. The place was once a vii/age but with the advent of Information Technology Companies and the rapid development of the Old Mahabalipuram, it has become a bustling suburban. Navalur is an upcoming residential area with many number of Flats coming up, mostly professionals from Information Technology companies renting and buying apartments. As detailed above, the property sold by the assessee is in the midst of development activities being carried out by builders in promoting housing/ Information Technolnology corridors, and no agricultural activities were being carried out either by the assesse nor by others in that area, the property is described as a mango grove as per the copy of the sale deed/patta, chitta adangal produced. In view of the same, the sale price received for the property has increased manifold which a normal agricultural land will not fetch. The price is in accordance with the development activities and chan....
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....clearly mentioned that in the entire chunk of lands, agricultural activities were carried out. He, therefore submitted that the assessee was carrying on agricultural activities and the lands were categorized as agricultural lands, therefore, the entire sale proceeds of sale of lands cannot be held as capital asset as provided u/s 2(14) of the Act and hence, the question of capital gains do not arise and relied on the order of the CIT(A). 9. We heard the rival submissions and perused the material placed before us. The ld. AR produced the copy of the sale deed. In the copy of the sale deed, the scheduled property was recorded as 'agricultural lands'. The assessee produced the copy of the revenue records. In the revenue records, the lands in question were recorded as 'agricultural lands'. The survey report shows that the lands in Survey No.67/22, 67/8C 1D16A, 67/8C 1D16C, 67/8C 1D16F and 67/8C1D19 were categorized as 'Dry - Well/Borewell irrigation - Class-II'. The Assessing Officer has referred the property for valuation to the DVO, and the DVO has made field inspection and made his comments in para 3.5 of his report as under: "3.5: Usage/Tenancy : In all the total proper....
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....umping motor is allotted under 'Full Subsidy Scheme'. The DVO has given the plantation details also as under: SI. No Pocket of land Survey No: Extent of the Land Pockets in Cents Remarks l. I 67/8C/1D/16A 42 cents Grown Up Casurina Plantations 2. II 67/8C/1D/16C 22 cents Grown Up Casurina Plantations& Chappotte Plantations 3. III Old S.No:67/8C/lD/16F (part), New S.Nb:67/196 135 cents Grown up Casurina Plantations of large Density. 4. IV S.No:67/8C/1D/19 150 cents Mango Trees, Coconut Trees, Casurina, a countable number of monkey pod Trees or Madras thorn Trees and many oher variety of species seen. The Thatched roof shelters and Mangalore tiled roof shelters meant for the farm workers exists in this pocket of land. The RCC building is situated in this pocket of land. 5. V S.No:67/22 142 cents 10. In his report, the DVO has also enclosed the photographs taken during his survey. As per the photographs enclosed alongwith the DVO's report, the assessee was growing casurina trees, sapotta trees, coconut trees and mango trees. In a nutshell, the DVO's report also supports that the assesse....