INCOME TAX ACT, 1961

Section 2(14)

Capital gains - Capital assest - Property not being agricultural land -

Assessee sold certain piece of land and did not offer resulting profit to capital gain tax pleading that land transferred was agricultural land on account of same being classified as such in the revenue records. Held: Land being subject matter of dispute was too small for carrying out agricultural operations and was sold at a price comparable to the price fetched by building sites.The price was such that no bona fide agriculturist would purchase the same for genuine agricultural operations. Evenmore no evidence of agricultural operations carried out was placed on record though assessee was owner of the property in question for 16 years. The evidence filed regarding use of land for agricultural purpose was sporadic not sufficient to discharge burden of assessee though land was classified as agricultural in the revenue records. Accordingly, property was not an agricultural land and profit on sale thereof was exigible to capital gains tax.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2013-14

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