AO must prove that sale of agricultural land is in the nature of trade to tax gain as business income

Pr. CIT Vs Heenaben Bhadresh Mehta (Gujarat High Court) Conclusion- Sale of Agricultural Land by the assessee was not ‘adventure in the nature of trade’ and therefore, profit earned on such sales cannot be taxed as business income. Facts – AO noticed that assessee has shown profit of INR 68,18,600 on sale of agricultural land, however, it was claimed as exempt on the ground that the land is not capital asset within the meaning of section 2 (14). Assessee submitted that land was purchased by his father on 28.03.2003 for INR 54,000 and the same was gifted to him on 02.09.2008 and t...