TaxTMI 
TaxTMI 
2019 (6) TMI 304
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....he meaning of capital asset as they were agricultural land as defined by Section 2(14) of the Act of 1961. 2. The relevant facts are that the assessee reported, (for the assessment year 2008-2009) certain sale transactions. His return claimed that the transaction in purchase and sale of agricultural land could not be included in taxable income in view of Section 2(14)(iii) of the Act of 1961; in support of his contention the assessee relied upon a certificate issued by the concerned Revenue Officer i.e. the Tehsildar to the effect that the land was situated 8 kilometers from any city municipality limits. The AO however, rejected the contention after considering the nature of the transactions. The asessee had contended that the lands initia....
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.... the statue should be a liberal one. Thus the ITAT fell nto error by setting aside the findings of the Appellate Commissioner. 6. The ITAT in its impugned order has not only considered the particular transaction, reported by the assessee but also analysed over a period of time, the nature of the sale and purchase activities. The ITAT reasoning in this regard is as follows:- "7. We have considered the rival submissions as well as relevant material on record. The first issue arises for our consideration and adjudication is whether the transaction of purchase and sale carried out by the assessee during the year under consideration are in the nature of trade and consequently the surplus/gain arising from sale of the lands is in the nature of....
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....le deed Amount Description of land sold 1. M/s Grass Field Fire Capital Developers Pvt. Ltd. 13/06/2007 Rs. 70,50,000/- Khasra No. 424/5 2. M/s Grass Field Fire Capital Developers Pvt. Ltd. 13/06/2007 Rs. 24,46,362/- Khasra No. 47 3. M/s Grass Field Fire Capital Developers Pvt. Ltd. 13/06/2007 Rs. 11,04,808/- Khasra No. 52 4. M/s Grass Field Fire Capital Developers Pvt. Ltd. 13/07/2007 Rs. 18,18,832/- Khasra No. 520/- 5. M/s Grass Field Fire Capital Developers Pvt. Ltd. 13/07/2007 Rs. 6,21,477/- Khasra No. 501 6. M/s Grass Field Fire Capital Developers Pvt. Ltd. 13/07/2007 Rs. 1168151/- Khasra No. 504 7. M/s Grass Field Fire Capital Developers Pvt. Ltd. 13/07/2007 Rs. 973459 ....
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.... said sale was within a period of 13 days from the date of purchase. Similarly some of the other transactions of land bearing khasara No. 42 and 65 were also sold within a period of four months from the date of purchase. Thus, it is discernable from the number of transactions carried out by the assessee one after another during the year under consideration and the period of holding is less than month and in some cases within few months which cannot be on the face of it regarded as investments made by the assessee in agricultural lands. The intention of the assessee for purchase of the land is also not in dispute that it was for resale and within a short period of time though the sale is only to the companies of which the assessee is a Direc....