Parasmal Ravindra Kumar Vs ITO (ITAT Chennai)
Individual assessee along with two of his family members sold 2.74 acres of vacant land at Padarvadi Village, Sriperumbudur Taluk. During scrutiny assessee claimed the capital gains on the transfer of asset as exempt u/s 2(14). Before the AO, assessee filed copy of adangal issued by the Village Administrative Officer (VAO), Pathervadi Village.
According to the AO, though the lands are classified as Punja lands in revenue records as per the Adangal register of the village, held the impugned lands are Banjar lands & there is no reference of agricultural activities being carried out. AO noted that the assessee purchased the lands from a real estate firm by name M/s. Aishwaryam Real Estates in the year 2008 & the impugned lands are classified as Residential lands by the Registration Department of Tamil Nadu from the year 2007. The guideline value adopted for the impugned lands is ₹.300/- per sq. feet, but the assessee sold the lands at ₹.500/- per sq. feet. Considering the land sold by the assessee is not an agricultural land, AO treated the same as capital assets & the resultant long term capital gains on sale of impugned land is brought to tax being assessee’s share at 1/3rd of after allowing indexed cost of acquisition.
