Functional comparability under TNMM supported exclusion of ITeS comparables with R&D, intangibles, diversified operations, or unavailable segmental da...
The ITAT upheld the CIT(A)'s finding that the assessee's sale of eight parcels of land constituted transfer of agricultural land, not non-agricultural land, for capital gains tax purposes. Although the lands were subsequently converted to non-agricultural use by the purchasers, the assessee sold the land while it remained agricultural in nature, as evidenced by land records and sale deeds. The conditional nature of conversion under section 63(AA), requiring conversion within 90 days or else cancellation of the sale deed, supports this conclusion. Consequently, the profits from the sale do not attract capital gains tax as non-agricultural land. The Revenue's appeal was dismissed, affirming that the assessee's short-term gains from agricultural land sales are not taxable under the capital gains provisions applicable to non-agricultural land.
The ITAT upheld the CIT(A)'s finding that the assessee's sale of eight parcels of land constituted transfer of agricultural land, not non-agricultural land, for capital gains tax purposes. Although the lands were subsequently converted to non-agricultural use by the purchasers, the assessee sold the land while it remained agricultural in nature, as evidenced by land records and sale deeds. The conditional nature of conversion under section 63(AA), requiring conversion within 90 days or else cancellation of the sale deed, supports this conclusion. Consequently, the profits from the sale do not attract capital gains tax as non-agricultural land. The Revenue's appeal was dismissed, affirming that the assessee's short-term gains from agricultural land sales are not taxable under the capital gains provisions applicable to non-agricultural land.
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