The Assessee is a professional Architect . The Assessee had\u00a0 purchased agricultural lands from time to time . During the year the Assessee has sold all the agricultural lands to Mayank \u00a0Land Pvt Ltd \u00a0for a sale consideration of Rs . 5, 39 67,045 and claimed that the sale of agricultural land being not a capital asset,\u00a0 hence not liable to capital gains . The Assessing Officer denied the exemption \u00a0on the ground that the aassessee has not carried on agricultural activities and income was not offered to tax as agricultural income \u00a0in the income tax return . The Assessing Officer relied on the report of the Inspector who has stated in \u00a0his report that the land is not capable of using \u00a0for agricultural activity . \u00a0On appeal the CIT( A) called for remand report and also examined \u00a0the Assessee under section. 131 of the Act . After satisfying the contention of the Assessee, \u00a0the Learned CIT(A)) , \u00a0allowed the claim of the Assessee treating the sale consideration \u00a0is not liable to be \u00a0taxed as capital gains . On appeal \u00a0by the Revenue , there was difference of opinion amongst the Honourabe Members of the ITAT. The matter was referred to \u00a0Third Member. The Honouarble Third Member considering the various case laws on the subject \u00a0and explaining the\u00a0 law on the subject held that \u00a0\u00a0the land sold by the assessee \u00a0as per the Land revenue record shown as \u201c Lagavadi Yogya Sherta \u201c ( Cultivable land ) . The Assessee has grown the Vegetables and minor millets in the said land .The \u00a0Land is situated in Raigad District . The Honourable \u00a0Third Member held that\u00a0 no condition is prescribed under the provision of section 2(14)(iii) of the Act that, active agricultural activity should be there at the time of sale of the land . \u00a0Only condition that it must be agricultural land . Accordingly \u00a0consideration received is\u00a0 not liable to be taxed as capital gains . The Honourable Third Member agreed with the view of the Learned Accountant Member . \u00a0Appeal of the Revenue was dismissed . \u00a0( ITA No . 5147 \/ Mum \/2017 dt. 21 -5 .2023 ) (AY. 2011-12 )<\/p>\n","protected":false},"excerpt":{"rendered":"
S.2(14)(iii): Capital asset-Agricultural land-Sale of agricultural land \u2013 Land revenue record shown as \u201c Lagavadi Yogya Sherta \u201c ( Cultivable land )- Vegetables and minor millets grown – Land situated in Raigad District – No condition is prescribed under the provision of section 2(14)(iii) of the Act that active agricultural activity should be there at the time of sale of the land \u2013 Only condition that it must be agricultural land – Consideration received is not liable to be taxed as capital gains .[ S. 45, 54B , 131 ] <\/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-35085","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-97T","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35085","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=35085"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35085\/revisions"}],"predecessor-version":[{"id":35086,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35085\/revisions\/35086"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=35085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=35085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=35085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}