Selling of agricultural land to non-agriculturist remains agricultural land only and could not be classified as Capital Assets

ITO Vs Urmila Bharatbhushan Agarwal (ITAT Ahmedabad) Conclusion: Where an agricultural land was sold to a non-agriculturist, the same did not loose its status as agricultural land and could not be classified as a capital assets. Held: During the relevant year, assessee reported agricultural income after deducting agricultural expenses. The return was subjected to a complete scrutiny to verify the claim of exempt income related to capital gains/losses from the sale of lands. Assessee owned 34 bighas of agricultural land and had consistently reported agricultural income from these lands ranging ...