No Penalty for mere Treatment of Capital Gain on Sale of Agricultural Land as Business Profit by AO

CA Sandeep Kanoi The case of the appellant-Department, in brief, is that the assessee had purchased agricultural lands with a clear intention to trade in buying and selling of agricultural lands, construction of residential and commercial complexes, leasing and trading in shares and securities and also leasing agricultural land. In the process of completing assessment under Section 143(3) of the Income Tax Act,, the exemption claimed with respect to the capital gains of sale of agricultural lands was negatived by the Assessing Officer and the same came to be confirmed even after the stage of T...