https://www.taxtmi.com/caselaws?id=8083 Agricultural land must be determined by its ordinary character, actual user, surrounding circumstances and the owner's intention. Applying those factors, land whose agricultural use had ceased after non-agricultural permission was obtained and which was intended for residential construction was treated as non-agricultural and therefore a capital asset under section 2(14). For capital gains, the cost of acquisition under sections 48 and 55 refers to the cost of the property transferred, and does not require the asset to have been a capital asset when first acquired. Where the land was acquired before 1 January 1954, the fair market value on that date could be adopted. en-us Mon, 07 Sep 1970 00:00:00 +0530 Sat, 28 Mar 2009 11:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8083 Agricultural land must be determined by its ordinary character, actual user, surrounding circumstances and the owner's intention. Applying those factors, land whose agricultural use had ceased after non-agricultural permission was obtained and which was intended for residential construction was treated as non-agricultural and therefore a capital asset under section 2(14). For capital gains, the cost of acquisition under sections 48 and 55 refers to the cost of the property transferred, and does not require the asset to have been a capital asset when first acquired. Where the land was acquired before 1 January 1954, the fair market value on that date could be adopted. Case-Laws Income Tax Mon, 07 Sep 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8083