Dismissing the appeal of the revenue the Court held that; land revenue records showed that land specified was agricultural land and distance from nearest Municipality is beyond 8 Kms. even though assessee ran a nursery on agricultural land ,the fact that there was loss and not income could not have made any difference to the nature and character of the land. ( AY.2007 -08)
PCIT v. P.S. Raghupathy (2018) 257 Taxman 225 (Mad)(HC).Editorial: SLP of revenue is dismissed PCIT v. P.S. Raghupathy ( 2019) 261 Taxman 248 (SC)
S.2(14)(iii): Capital asset-Agricultural land – Beyond 8 Kms from nearest Municipality -Nursery- Land record showing the land as agricultural land – Sale consideration is exempt from tax .[ S.45 ]