MINIMUM ALTERNATIVE TAX -115JB OF INCOME TAX ACT, 1961

[b g reddy]

weather sale of agriculture land beyond 8 km from municipal limits by a company attracts MAT or not .pleaseclarift

thanks

[CAGOPALJI AGRAWAL]

Since agricultural land is not capital asset hence its gain is not taxable under income tax. But there is no exclusion clause in the MAT provisions for excluding such incomes. However in a case of Delhi Gymkhana Club Limited Vs. CIT 2010, it was held that income not taxable on the ground of mutuality can not be taxed u/s 115JB.

 

I also seek any different view on the matter.

[b g reddy]

 GOPALJI AGRAWAL ,thank you very much for the reply to my query, but we did not find the Delhi Gymkhana Club Limited Vs. CIT 2010 case details,please clarify this where we get the case details

AI Summary

Minimum Alternate Tax applicability to non taxable agricultural land gains is questioned amid mutuality precedent. Whether sale of agricultural land by a company attracts Minimum Alternate Tax is in question: agricultural land gains are generally not taxable as capital gains, yet MAT contains no explicit exclusion for such non taxable incomes. A reported decision is cited holding that receipts excluded from tax by reason of mutuality should not be included in MAT, and the author seeks the citation for that authority to resolve whether non taxable agricultural receipts are excluded from the MAT base.