The assessee sold four pieces of agricultural land to a company Steel Strips Wheels Ltd . \u00a0The purchaser received permission for bona fide industrial purposes. Assessee has obtained certificate for change of land use from agricultural to non-agricultural. The assessee contented that the land sold by him did not qualify as \u201ccapital asset\u201d in terms of section 2(14)(iii) being rural agricultural land. The AO held that \u00a0the land sold by the assessee as non agricultural land and concluded that it qualifies capital asset and therefore capital gained earned is liable to tax. \u00a0ITAT held that, AO has erred in interpreting S.63AA of the Gujrat Tenancy and Agricultural land laws Act,1997 and the land did not qualify capital asset in terms of s.2(14)(iii) of the Act. Accordingly the capital gains is not liable to tax .\u00a0 ( AY.2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S.2(14)(iii): Capital asset \u2013 Agricultural land \u2013Sale of agricultural land \u2013 Purchaser changed the use for commercial purposes \u2013 Not assessable as capital gains . [Gujarat Tenancy and Agricultural Lands ( Amendment ) Act , 1997 ( GT & All) S.63AA,65B]<\/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-40865","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-aD7","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/40865","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=40865"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/40865\/revisions"}],"predecessor-version":[{"id":40866,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/40865\/revisions\/40866"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=40865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=40865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=40865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}