https://www.taxtmi.com/caselaws?id=25129 The High Court of Madhya Pradesh determined that profit from the sale of agricultural land, not used for agricultural activities, did not qualify as agricultural income under the Income-tax Act, 1961. As the land fell within municipal limits, it was considered a "capital asset," resulting in the profit being taxable as capital gains rather than exempt agricultural income. The court ruled against the assessee, emphasizing the necessity of actual agricultural use of the land for tax treatment purposes. Each party was directed to bear their own costs related to the reference. en-us Thu, 13 Aug 1987 00:00:00 +0530 Mon, 25 Jan 2010 15:44:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25129 The High Court of Madhya Pradesh determined that profit from the sale of agricultural land, not used for agricultural activities, did not qualify as agricultural income under the Income-tax Act, 1961. As the land fell within municipal limits, it was considered a "capital asset," resulting in the profit being taxable as capital gains rather than exempt agricultural income. The court ruled against the assessee, emphasizing the necessity of actual agricultural use of the land for tax treatment purposes. Each party was directed to bear their own costs related to the reference. Case-Laws Income Tax Thu, 13 Aug 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25129