https://www.taxtmi.com/caselaws?id=28953 Agricultural land was excluded from the definition of capital asset under section 2(14) of the Income-tax Act as it then stood, so capital gains under section 45 arose only if the land transferred was in fact non-agricultural. The record-of-rights entry created only a rebuttable presumption; the real character of the land had to be determined from its actual or intended use and surrounding circumstances on the date of sale. Long-standing cultivation, agricultural income, assessment records, and use of cultivation equipment showed agricultural character, and municipal location or proposed industrial use did not by itself alter that character. Capital gains tax was therefore not chargeable on the transfer. en-us Tue, 11 Jan 1983 00:00:00 +0530 Mon, 08 Mar 2010 18:04:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28953 Agricultural land was excluded from the definition of capital asset under section 2(14) of the Income-tax Act as it then stood, so capital gains under section 45 arose only if the land transferred was in fact non-agricultural. The record-of-rights entry created only a rebuttable presumption; the real character of the land had to be determined from its actual or intended use and surrounding circumstances on the date of sale. Long-standing cultivation, agricultural income, assessment records, and use of cultivation equipment showed agricultural character, and municipal location or proposed industrial use did not by itself alter that character. Capital gains tax was therefore not chargeable on the transfer. Case-Laws Income Tax Tue, 11 Jan 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28953