https://www.taxtmi.com/caselaws?id=423487 The Tribunal allowed the appeal, determining that the land sold was agricultural and not a capital asset under Section 2(14) of the Act. Therefore, the surplus from the sale was exempt from capital gains tax, and the additions made by the AO were deleted. Additionally, the initiation of penalty proceedings under Section 271(1)(c) was quashed. The Tribunal's decision was based on evidence showing the land's agricultural use until the sale, supported by revenue records and local certificates, as well as legal precedents indicating that conversion for non-agricultural purposes does not change the land's classification. en-us Fri, 25 Mar 2022 00:00:00 +0530 Wed, 08 Jun 2022 12:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=423487 The Tribunal allowed the appeal, determining that the land sold was agricultural and not a capital asset under Section 2(14) of the Act. Therefore, the surplus from the sale was exempt from capital gains tax, and the additions made by the AO were deleted. Additionally, the initiation of penalty proceedings under Section 271(1)(c) was quashed. The Tribunal's decision was based on evidence showing the land's agricultural use until the sale, supported by revenue records and local certificates, as well as legal precedents indicating that conversion for non-agricultural purposes does not change the land's classification. Case-Laws Income Tax Fri, 25 Mar 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=423487