Capital Gains Deleted as Land Retained Agricultural Character at Time of Sale

Advertisement Hiten Tulshibhai Engineer Vs ITO (ITAT Ahmedabad) The Income Tax Appellate Tribunal, Ahmedabad Bench, adjudicated an appeal concerning addition of ₹3,56,70,539 as undisclosed capital gains arising from sale of land for Assessment Year 2016–17. The assessee had sold land to a company for ₹3,86,98,710 but did not offer any capital gains to tax, contending that the land was “rural agricultural land” and therefore not a “capital asset” under Section 2(14)(iii) of the Income Tax Act. The Assessing Officer rejected this claim, treating the land as non-agricultural on t...