Case Law Details
Girdhari Lal Vs ITO (ITAT Delhi)
The test for determining whether the impugned land is agriculture bear mainly on the nature or character of the land, and not merely on the actual user or non-user at a particular point of time. If the land is not actually appropriated for agricultural purposes, the minimal requirement is that it should be set apart for being used for agricultural purposes and should be such as could reasonably be so used without alteration of its character, entries in the revenue records being prima facie, but not conclusive evidence. In order to qualify for exemption, it is not enough that the land was once agricultural land, it must be agricultural land at the time of sale. As per Revenue records no agricultural activities were carried out by the assessee in the land and the same was also situated within 8 km. of local municipal limits. Therefore, nature and character of the land would not show that the land was to be an agricultural land. Further that, the assessee did not file any explanation before the AO that the property in question was agricultural land. Assessee failed to controvert findings recorded by the AO. Hence, the addition made by the AO under head long-term capital gain by invoking provisions of section 50C was justified.
FULL TEXT OF THE ITAT JUDGMENT
This appeal by assessee has been directed against the order of the learned Commissioner (Appeals), Ghaziabad, dated 31-8-2017, for the assessment year 2007-08.
2. Briefly, the facts of the case are that assessee filed return of income declaring income of Rs. 1,45,142. The assessee declared long-term capital gains at Rs. 1,33,769 from sale of land Khata No. 573, Khasara No. 1234, measuring 2970 sq. mtr situated in Village Ruza Yakubpur, Pargana & Tehsil Dadri, District Gautam Budh Nagar and income from other sources at Rs. 11,373. The case was selected for scrutiny. Finlay, the assessment was completed by assessing long-term capital gains at Rs. 33,81,514 by taking sale value adopted at Rs. 44,60,000 under section 50C as against taken by assessee at Rs. 11 lakhs.
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