Selling of agricultural Land after plotting & its Taxation

Selling of agricultural kand after plotting & its Taxation

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Selling of agricultural land after plotting & its Taxation

Mahaveer Yadav Vs ITO
Having heard the parties, the Supreme Court condoned the delay and dismisses the SLP thus concurring with the opinion of High Court on the characteristic of income accrued from sale of plots upon conversion.
– Assessee’s SLP dismissed : SUPREME COURT OF INDIA
THE assessee- individual had subdivided its agricultural land & developed it into 34 plots for easy viability. However, the AO and the CIT(A) held that the assessee had developed the agricultural land into 34 small plots, developed access roads & sold them to individual purchasers as residential plots, over a period of 3 years. It was observed that the assessee had changed the entire nature of the plot from agricultural to residential stock-in-trade for earning profits. Also, the authorities considered this sale as income from business and not as income from capital gains. On appeal, the Tribunal upheld the findings of the lower authorities. The matter ultimately reached High Court, where it was held that the Writ Court could not interfere & alter the judgment of the Tribunal which the final fact-finding authority, if there was nothing perverse in its finding.
Having heard the parties, the Supreme Court condoned the delay and dismisses the SLP thus concurring with the opinion of High Court on the characterstic of income accrued from sale of plots upon conversion.
Assessee’s SLP dismissed
Special Leave Petition (Civil) Diary No(s).7503/2019

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