The Appellate Tribunal addressed the issue of whether land sold...

The Appellate Tribunal addressed the issue of whether land sold should be treated as agricultural for Long Term Capital Gains (LTCG) purposes. The Department did not challenge that agricultural activities were ongoing until the sale. The Tribunal agreed that continuous agricultural use means the land retains its agricultural status despite prior non-agricultural conversion. Citing legal precedent, the Tribunal noted the need to determine if the land meets the definition of agricultural land u/s 2(14) of the Act. The matter was remanded to the Assessing Officer for this evaluation. The Tribunal upheld the direction to allow deductions u/s 54F/54B, finding no fault with the decision. The appeal was partially allowed for statistical purposes.

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