The assesseee sold the agricultural land. As per the condition of MOA the assessee agreed to cut and carry away all rubber trees on said land at his own expenses before sale.\u00a0 Land continued to be agricultural land in the revenue records and the land is located 20 kms. away from municipal corporation limits. The\u00a0\u00a0 Assessing Officer held that\u00a0\u00a0 with cutting and carrying away of rubber trees land became barren land and a barren land could not be treated as agricultural land and, further, KSIDC, in due course of time, upon purchase from assessee, converted said land into an\u00a0industrial\u00a0 Estate. The Assessing Officer assessed the gain\u00a0 on sale of said land\u00a0 as liable to capital gains tax.\u00a0 The Tribunal held that the\u00a0 sale of agricultural land\u00a0 cannot be assessed as capital gains. On appeal by the revenue land the Court held that the\u00a0 land in question was located 20 kms. away from municipal corporation limits.\u00a0 Assessee had demonstrated that classification of land continued to be an agricultural land in revenue records even as on date of sale.\u00a0 Land was put to use only for agricultural purposes by assessee-The assessee could not be expected to have control over activities of buyer once transfer was completed. Cutting and carrying away of rubber trees did not change classification of land from agricultural to non-agricultural land.\u00a0 Order of Tribunal was affirmed.\u00a0 \u00a0(AY. 1996-97)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 2(14)(iii) : Capital asset-Agricultural land-Land continued to be agricultural land in the revenue records-located 20 kms. away from municipal corporation limits-Cutting and carrying away of rubber trees did not change classification of land from agricultural to non-agricultural land-User by buyer is not relevant for assessing the gain in the hands of the assessee-Not liable to be assessed as capital gains [S. 45] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-24920","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-6tW","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/24920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=24920"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/24920\/revisions"}],"predecessor-version":[{"id":26433,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/24920\/revisions\/26433"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=24920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=24920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=24920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}