https://www.taxtmi.com/caselaws?id=427202 Agricultural land that retains its agricultural character and falls outside the statutory definition of a capital asset is not subject to capital gains tax on transfer. The land here was recorded as Ghasni land in Himachal Pradesh, used for grazing and pasture, and supported by trees; revenue records and local land law confirmed its agricultural nature. No contrary evidence showed that it had lost that character, and the purchaser's later request for change of land use did not alter the nature of the land in the assessee's hands at the time of transfer. As section 45 applies only to transfers of capital assets, the addition for long-term capital gain was deleted. en-us Wed, 10 Aug 2022 00:00:00 +0530 Sat, 03 Sep 2022 08:06:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=427202 Agricultural land that retains its agricultural character and falls outside the statutory definition of a capital asset is not subject to capital gains tax on transfer. The land here was recorded as Ghasni land in Himachal Pradesh, used for grazing and pasture, and supported by trees; revenue records and local land law confirmed its agricultural nature. No contrary evidence showed that it had lost that character, and the purchaser's later request for change of land use did not alter the nature of the land in the assessee's hands at the time of transfer. As section 45 applies only to transfers of capital assets, the addition for long-term capital gain was deleted. Case-Laws Income Tax Wed, 10 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=427202