25 February 2015
Respected Sir, As per my last conversion with ACIT ahmedabad, My client has purchase Agri. land with 3 other co-owners for the agriculture purpose. Respected ACIT say that he can assessed the same as AOP and enforce my client to pay tax on the same. But my question is that the land is purchased by the party and till not sale. whether department can enforce him to pay tax on just purchase of land ? UNder Which Section ?
opinion of ACIT to consider it as AOP is correct ? If Yes, under which section ?
25 February 2015
Department can not enforce payment of tax on purchase of land if sources for purchases are proved. Opinion of ACIT to consider it as AOP is correct. Income earned from this land by agriculture is exempted, even if it is treated as AOP.
CAclubindia
