The assessee, an individual, sold land at village Tambati, Taluka Khalapur, Raigad District and claimed exemption of capital gains as agricultural land. The AO held the land sold was in an industrial zone, unused for agricultural purposes since 1997\u201398 and sold for industrial purposes. Therefore, the assessee is not eligible to claim exemption. CIT(A) upheld the AO\u2019s view by placing reliance on (i) inspector\u2019s report showing industrial construction (ii) statement of purchaser\u2019s director admitting land was agricultural but situated in industrial zone and intended for industrial purposes (iii) Talathi\u2019s reply confirming no agricultural activity since 1997\u201398. ITAT held that classification as agricultural land in records and litigation preventing cultivation must be considered. The matter hinges on factual evaluation under section 2(14). The Hon\u2019ble ITAT relied on the judgment of Hon\u2019ble Gujarat High Court in the case of CIT v Siddharth J Desai [1982] 139 ITR 628 (Guj HC) and laid down 13 tests to determine whether land is agricultural land, and the matter was sent back to the AO for re-examination of the impugned issue as per the conditions laid down.\u00a0 (AY. 2016 17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S.45: Capital gains -Capital asset -Agricultural land-Tests to be applied-Whether land qualifies as agricultural land is a question of fact requiring cumulative consideration of multiple factors-Mere mention of agricultural land in revenue records is not sufficient if the land is not actually used for agriculture or is sold for non-agricultural purposes-Matter remanded. [S. 2(14)(iii)]<\/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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62515","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-ggj","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62515","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=62515"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62515\/revisions"}],"predecessor-version":[{"id":62516,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62515\/revisions\/62516"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}