https://www.taxtmi.com/caselaws?id=251059 Agricultural land shown as such in revenue records, supported by cultivation evidence and accepted agricultural income, is treated as outside the definition of capital asset under section 2(14)(iii) when it lies beyond the prescribed municipal limits and has not been converted to non-agricultural use. A later municipal notification or reorganisation does not change the land's character for the relevant year. The text further notes that a profitable sale of such land, without plotting, development, or other indicators of commercial dealing, does not by itself amount to an adventure in the nature of trade or generate business income; the surplus is then not assessable as business income. en-us Thu, 28 Aug 2014 00:00:00 +0530 Wed, 03 Sep 2014 13:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=251059 Agricultural land shown as such in revenue records, supported by cultivation evidence and accepted agricultural income, is treated as outside the definition of capital asset under section 2(14)(iii) when it lies beyond the prescribed municipal limits and has not been converted to non-agricultural use. A later municipal notification or reorganisation does not change the land's character for the relevant year. The text further notes that a profitable sale of such land, without plotting, development, or other indicators of commercial dealing, does not by itself amount to an adventure in the nature of trade or generate business income; the surplus is then not assessable as business income. Case-Laws Income Tax Thu, 28 Aug 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=251059