Tax Treatment of Agricultural Land Sale: No Need for Active Agricultural Activity

ACIT Vs Ashok W. Wesavkar (ITAT Mumbai) In this case of ACIT vs. Ashok W. Wesavkar, the issue revolved around the tax treatment of the sale of agricultural land by the assessee. The assessee, who was a professional architect, had sold agricultural lands to Mayank Land Pvt. Ltd. for a considerable sum. The assessee claimed that the sale of agricultural land was not liable for capital gains tax as it did not qualify as a capital asset. The Assessing Officer denied the exemption and asserted that the assessee had not carried out agricultural activities on the land, and thus, the income was not of...