TaxTMI 
TaxTMI 
2021 (6) TMI 512
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....Company") authorized the Appellant to Purchase land on behalf of the Company. 3. The Learned CIT (Appeal) has erred in not considering that-all the funds for the purpose of acquisition of agricultural lands were paid by the Company and appellant did not pay any amount towards acquisition of such agriculture lands. 4. The Learned CIT (Appeal) has erred in not considering the fact that the Appellant transferred the land on behalf of the Company. 5. The Learned CIT (Appeal) has erred in not considering the fact that no consideration in cash or kind is received by the Appellant. 6. The Learned CIT (Appeal) has erred in not considering the fact that lands were not transferred by the Appellant and no consideration has been received by the appellant, hence the said would not amount to transfer in the case of appellant and See 50C of the Income Tax Act, 1961 would not be applicable in the case of the Appellant. 7. On 12th August 2005, vide special power of attorney M/s RMP Infotec Private Limited (the Company) authorized the below mentioned following persons to acquire agriculture lands on behalf of the company. Manji B Patel L....
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....ate value as per Section 50C of the Act is worked out at Rs.93,29,798/-. We find that the learned Assessing Officer after giving deduction for indexed cost of acquisition arrived at the long term capital figure of Rs.77,98,873/- and made addition thereon in the assessment. Similarly, the assessee sold another property with two others for a total consideration of Rs.1,57,87,500/-, for which the stamp duty value as per Section 50C of the Act was arrived at Rs.4,21,49,000/-. The proportionate consideration attributable to the assessee was arrived at Rs.51,68,286/- and the proportionate value as per section 50 C of the Act value attributable to the assessee was worked out at Rs.1,37,98,138/-. The learned Assessing Officer after giving deduction for the cost thereon arrived at the Short Term Capital Gain at Rs.1,29,31,618/- and brought to tax the same in the assessment. 4. We find that the assessee filed the following written submission before the CIT(A) as under:- "On the 12th August, 2005, vide special power of attorney (copy of the same is enclosed for your ready reference) M/s RMP Infotech Limited (the company) authorized the below mentioned following persons to ac....
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....e Tax Officer N. Navbharat Potteries (P). Ltd, we whereby state that the said sale deed executed towards non agricultural land would not be considered as transfer in the hands of our above mentioned client." " 5. The learned CIT(A) observed that during the course of appellate proceedings after discussion about the modus operandi of assessee's business, the assessee has changed his above stand and accepted the fact that purchase and sale of land were done by him in his individual capacity and not on above company i.e. M/s RMP Infotech Limited as was claimed before the learned Assessing Officer. In view of these facts, the assessee has requested for withdrawal of original grounds of appeal, by raising the additional grounds before the learned Commissioner of Income Tax (Appeals). In the additional grounds, the assessee has taken two stands:- (i) land being agricultural land, hence, the sale proceeds/ gain is not taxable at all (ii) In respect of non-agricultural land, the learned Assessing Officer has taken the value of sale consideration as per section 50C of the Act on a higher side. Accordingly, the learned CIT(A) proceeded to examine and adjudicate the aforesaid two aspects ra....
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....gain, as per provisions of Sec 50C of the Act, at higher side. 6.1 During the course of appellate proceedings, the Ld AR was required to establish the fact that the land under question was an agricultural land, by furnishing the details of land cultivated, crops grown, expenditures incurred for cultivation, irrigation, seeding, fertilizers, harvesting, threshing, marketing, etc, along with past history and present status. He was also required to furnish details of purchase and sales of each land i.e. date of purchase I sales, amounts of purchase and sale, nature of land, purpose for which the land purchased and - accordingly required to determine the taxable income against land dealing. 6.2 In compliance, vide order sheet noting dated 28.3.2016, the Id. AR admitted the fact that land under question was never cultivated either in the past or after purchase of land by the appellant. It is further clarified that the claim of agricultural land cannot be established as the appellant has never carried out any agricultural activities and have also never declared any income there - from. The appellant, however, claimed that the lands under question are situated, much beyo....