Agricultural nature of land at time of sale determinative regardless of buyer’s intended use: ITAT Ahmedabad

JCIT Vs Rajeshkumar Shantilal Sanghvi (ITAT Ahmedabad) ITAT Ahmedabad held that the agricultural nature of the land at the time of sale is determinative, regardless of the buyer’s intended use. Thus, land sold was agricultural land and hence doesn’t attract capital gain. Facts- The case of the assessee was reopened u/s.n 147 on the grounds that the assessee sold agricultural land to Madhukar Infrastructure & Developers Pvt. Ltd. (MIDPL) and failed to declare any capital gains arising from the sale, claiming the land was not a capital asset under Section 2(14)(iii) of the Act. AO co...