Tax on Agricultural land transferred under JDA

Medravathi Agro Farms Pvt. Ltd. Vs ACIT (ITAT Hyderabad) It is observed that the assessee company as well as other thirteen land owning companies were incorporated with their main object to carry on the agricultural activities and there is no dispute about the same. In order to pursue this main objects, these companies purchased agricultural lands in the year 2002 and the lands so purchased were treated by them in the books of account as capital asset upto 30 December, 2005 when the said lands were transferred to a developer company, M/s. Maytas Properties Ltd. by way of development agreement....