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

Is Agricultural Land Sale Beyond 8 km from Municipal Limits Subject to MAT Under Section 115JB? A query was raised about whether the sale of agricultural land beyond 8 km from municipal limits by a company is subject to Minimum Alternative Tax (MAT) under Section 115JB of the Income Tax Act, 1961. It was clarified that agricultural land is not considered a capital asset, so its gain is not taxable under regular income tax. However, MAT provisions do not explicitly exclude such incomes. A case, Delhi Gymkhana Club Limited Vs. CIT 2010, was mentioned, where income not taxable on mutuality grounds was not taxed under Section 115JB, though further details were requested.