Nature of Land Sold is to be Ascertained based on Sale Deed Executed: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Delhi Bench has held that the nature of land sold is to be ascertained based on the sale deed executed.

The appellant, Phool Singh is an agriculturist. The Assessing Officer on receipt of the information that the appellant, had sold an immovable property for a sum of Rs. 3,20,34,000/- reopened the assessment and made an addition of Rs. 2,45,89,870/- after giving deduction u/s 54F of Rs. 12,02,500/-. The aggrieved appellant approached the CIT(A). The CIT(A) dismissed the appeal, hence appellant approached ITAT.

The counsel for the appellant submitted that the land sold was ancestral agricultural land and had been truly used for agricultural purposes till the sale as per agricultural land records. The use of land sold was changed and treated as industrial land for the purpose of the said sale-deed only on the intention of the purchaser since the purchaser had purchased the agricultural land for the use of nonagricultural i.e. industrial purposes.

The counsel for the revenue submitted that the assessee has laid much stress on the usage of the land but such contention is contrary to the records. The sale deed in unequivocal terms states the transfer of industrial land. Therefore, no doubt remains regarding the character of the land.

The Coram of Mr. Kul Bharat, Judicial Member, and Mr. Pradip Kumar Kedia, Accountant Member while dismissing the appeal observed that the sale deed demonstrates that what was being transferred was industrial land. Therefore, there is no ambiguity in the facts. The objection of the assessee that land was agricultural land is devoid of merit.

Mr. Ms. Moninder Kaur appeared on behalf of the respondent.

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