Agricultural land test: revenue records alone are not decisive where surrounding facts show non-agricultural character.

Whether land qualifies as agricultural land depends on a cumulative assessment of all relevant facts and surrounding circumstances, including revenue classification, actual use, development around the property, the nature of the purchaser, the price fetched, and the parties' conduct. Revenue records and an assertion of agricultural use are not decisive if the overall evidence indicates a non-agricultural character. Applying these settled tests to the same jointly owned suburban property, and finding no material difference from the earlier co-owner's case, the land was treated as non-agricultural and the long-term capital gains addition was sustained.

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Issues: Whether the land sold by the assessee was agricultural land and therefore outside the ambit of capital asset, so that the addition made towards long-term capital gains could not survive.

Analysis: The land was jointly owned and sold in a rapidly developing suburban area. The earlier co-owner's case had already been decided against the assessee after applying the settled tests for determining the character of land, including revenue classification, actual user, surrounding development, nature of purchaser, price fetched, and the overall conduct and circumstances surrounding the transfer. The mere entry of the land as agricultural in revenue records and the assertion of agricultural use were held to be insufficient when weighed against the surrounding indicators showing that the property was not genuinely agricultural in character. The present appeal involved the same property and no material difference in facts was shown.

Conclusion: The land was not accepted as agricultural land, and the addition as long-term capital gains was sustained.

Final Conclusion: The Revenue succeeded, the order of the first appellate authority was reversed, and the assessment was restored.

Ratio Decidendi: Whether land is agricultural land must be determined on a cumulative assessment of all relevant facts and surrounding circumstances, and revenue records alone are not decisive where the overall evidence points to a non-agricultural character.

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