If the agricultural land sold was a rural agricultural land as per Section 2(14)(iii) of the Act and the agricultural land situated in rural area was not covered in the definition of capital asset, no capital gain is applicable. The provisions of Section 2(14)(iii) of the act does not require that agricultural operations should be undertaken on such land at the time of transfer or immediately prior to the transfer. Only in cases where Section 10(37) and Section 54B of the Act were applicable, for claiming exemption from sale of agricultural land, there is requirement that the land should be used for agricultural purposes during the preceding two years from the date of transfer