Profit on sale of Agricultural Land cannot be taxed as Business Income for mere absence of Agricultural Activity

Mr.Vinod D Motiwala Vs. ITO (ITAT Mumbai)- AO has considered the fact that the assessee did not carry on any agricultural activity. In our view, the absence of agricultural activity cannot be considered to be the sole ground to determine the intention of the assessee. The question relating to presence or absence of agricultural activity may be relevant to determine the character of land, but, in our view, the same may not be relevant to determine the intention of the assessee to hold the same as investment or as stock in trade. Similarly, the joint purchase of land cannot also be considered to...