TaxTMI 
TaxTMI 
2018 (8) TMI 755
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....s were initiated by issuing a Notice u/s 148 of the Act on 17.03.2016. In response, the assessee filed return of income on 30.05.2016 declaring NIL income and agriculture income of Rs. 50,000/-. The AO initiated the scrutiny proceedings and after discussing the matter with the Ld. Counsel for the assessee, the AO computed long-term capital gain of Rs. 49,45,757/- and allowed exemption u/s 54F amounting to Rs. 13,48,432/-. Thus, the assessment was completed by determining net capital gain of Rs. 35,97,325/-. 2.1 The assessee challenged the assessment order and the additions before the Ld. CIT(A). The assessee submitted that she is an agriculturist and sold agriculture land and agriculture activity was done on the land at the time of transfe....
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....l consideration of Rs. 51,00,000/-. It is to be noted that this agreement to sell was made without transferring the possession. On page 11 of the agreement the following is recorded:- From the above, it is clear that the possession was not transferred at the time of agreement to sell. After that vide order dated 26.02.2009, the SDM changed the land use and declared the land as non agricultural. Thereafter, the sale deed was registered on 24.03.2009. Therefore, it can be seen that when the sale deed was signed and the transaction of sale of land was completed, the land had acquired the character of non agricultural land. Hence, on the date of sale the land in question was not an agricultural land. Therefore, the same would qualify....
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....ion. 4. On the other hand, Ld. DR relied upon the orders of the authorities below. 5. After considering the rival submissions and material available on record, we do not find any merit in the appeal of the assessee. The assessee claimed to have sold the agricultural land. The Ld. CIT(A) noted that initially the assessee had entered into the agriculture to sell with the purchaser namely M/s Arshiya International Ltd. and received part consideration. It was noted in the agreement to sell the same is executed without transferring the possession. The copy of the sale deed dated 24.03.2009 shows that the properties in question have been referred as "industrial plot" for industrial purposes. In the sale deed, it is also mentioned that the plot ....