https://www.taxtmi.com/caselaws?id=25382 Parliament lacks competence to tax profits from transfer of land used for agricultural purposes when the land is assessed to land revenue or subject to a local rate, even if situated within municipal limits or within a notified radius; that income remains agricultural income and not taxable as capital gains by mere amendment of the definition of capital asset. Where land is not so assessed or rated, being within municipal limits or notified distance removes its agricultural character and permits taxation. Buildings appurtenant to land are treated differently. The conclusions rely on construing definitions of capital asset and agricultural income together and, if required, applying the doctrine of reading down. en-us Fri, 09 Oct 1987 00:00:00 +0530 Fri, 16 Jan 2026 10:59:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25382 Parliament lacks competence to tax profits from transfer of land used for agricultural purposes when the land is assessed to land revenue or subject to a local rate, even if situated within municipal limits or within a notified radius; that income remains agricultural income and not taxable as capital gains by mere amendment of the definition of capital asset. Where land is not so assessed or rated, being within municipal limits or notified distance removes its agricultural character and permits taxation. Buildings appurtenant to land are treated differently. The conclusions rely on construing definitions of capital asset and agricultural income together and, if required, applying the doctrine of reading down. Case-Laws Income Tax Fri, 09 Oct 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25382