https://www.taxtmi.com/caselaws?id=29222 Land retains its agricultural character on the date of sale where it is actually cultivated, recorded as agricultural in revenue records, and assessed to land revenue. A strong rebuttable presumption arises from actual user and consistent record-of-rights entries, and this is not displaced merely because the land may be suitable for future non-agricultural development or because the purchaser intends residential use. In the stated facts, no conversion for non-agricultural use had been obtained before sale, so the surplus on transfer was not chargeable to capital gains tax. The Tribunal was held to have erred in ignoring the presumption and treating the agricultural activity as a sham. en-us Wed, 17 Sep 1980 00:00:00 +0530 Thu, 11 Mar 2010 14:32:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29222 Land retains its agricultural character on the date of sale where it is actually cultivated, recorded as agricultural in revenue records, and assessed to land revenue. A strong rebuttable presumption arises from actual user and consistent record-of-rights entries, and this is not displaced merely because the land may be suitable for future non-agricultural development or because the purchaser intends residential use. In the stated facts, no conversion for non-agricultural use had been obtained before sale, so the surplus on transfer was not chargeable to capital gains tax. The Tribunal was held to have erred in ignoring the presumption and treating the agricultural activity as a sham. Case-Laws Income Tax Wed, 17 Sep 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29222