https://www.taxtmi.com/caselaws?id=39182 Land actually and consistently used for agriculture up to the date of transfer ordinarily retains its agricultural character for income-tax purposes, and that actual user is the primary test for deciding whether it is a capital asset. Surrounding development, municipal limits, town planning, sale price, and future non-agricultural potential are secondary indicators, relevant mainly where the land is idle or the agricultural use is only temporary. On the stated facts, continuous agricultural operations continued until sale and nothing showed that the character had changed before transfer. The land was therefore agricultural land on the date of sale and outside the definition of capital asset. en-us Thu, 25 Mar 1976 00:00:00 +0530 Tue, 13 Apr 2010 15:24:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39182 Land actually and consistently used for agriculture up to the date of transfer ordinarily retains its agricultural character for income-tax purposes, and that actual user is the primary test for deciding whether it is a capital asset. Surrounding development, municipal limits, town planning, sale price, and future non-agricultural potential are secondary indicators, relevant mainly where the land is idle or the agricultural use is only temporary. On the stated facts, continuous agricultural operations continued until sale and nothing showed that the character had changed before transfer. The land was therefore agricultural land on the date of sale and outside the definition of capital asset. Case-Laws Income Tax Thu, 25 Mar 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39182