https://www.taxtmi.com/caselaws?id=425434 For taxing surplus on sale of land as business income, the decisive test is the character of the land on the date of transfer. Where revenue records, including 7/12 extracts, showed agricultural classification and use, and the assessee had also reflected agricultural income and long ownership, the land was treated as agricultural land. Later purchaser conduct, post-sale inspection, conversion permission, urban proximity, or the assessee's original purchase intention did not displace the contemporaneous evidence. The conversion of the asset in the books from stock-in-trade to investment, having been accepted earlier, further supported investment treatment. The surplus from sale was therefore outside business income, and the transaction was not an adventure in the nature of trade. en-us Tue, 05 Apr 2022 00:00:00 +0530 Sat, 20 Aug 2022 10:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=425434 For taxing surplus on sale of land as business income, the decisive test is the character of the land on the date of transfer. Where revenue records, including 7/12 extracts, showed agricultural classification and use, and the assessee had also reflected agricultural income and long ownership, the land was treated as agricultural land. Later purchaser conduct, post-sale inspection, conversion permission, urban proximity, or the assessee's original purchase intention did not displace the contemporaneous evidence. The conversion of the asset in the books from stock-in-trade to investment, having been accepted earlier, further supported investment treatment. The surplus from sale was therefore outside business income, and the transaction was not an adventure in the nature of trade. Case-Laws Income Tax Tue, 05 Apr 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=425434