https://www.taxtmi.com/caselaws?id=9012 Agricultural land is excluded from capital asset treatment under the Indian Income-tax Act, 1922, and capital gains arise only on transfer of a capital asset. In determining whether land retains agricultural character, the relevant factors are its nature, prior use, basic agricultural operations, and surrounding circumstances. Here, the presence of coconut and fruit-bearing trees, wells and a tank, land revenue assessment, and prior treatment as agricultural land supported that character. No definite act of conversion into non-agricultural land was shown. Mere suitability for house sites or an intention to develop the property did not change its character, so the sale proceeds were not assessable as capital gains. en-us Thu, 23 Dec 1971 00:00:00 +0530 Thu, 18 Jun 2009 16:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9012 Agricultural land is excluded from capital asset treatment under the Indian Income-tax Act, 1922, and capital gains arise only on transfer of a capital asset. In determining whether land retains agricultural character, the relevant factors are its nature, prior use, basic agricultural operations, and surrounding circumstances. Here, the presence of coconut and fruit-bearing trees, wells and a tank, land revenue assessment, and prior treatment as agricultural land supported that character. No definite act of conversion into non-agricultural land was shown. Mere suitability for house sites or an intention to develop the property did not change its character, so the sale proceeds were not assessable as capital gains. Case-Laws Income Tax Thu, 23 Dec 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9012