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2019 (4) TMI 776 - ITAT DELHITaxability of Capital gain - land sold was agricultural land and fall under capital asset? - agricultural income from land accepted - AO treating the land as urban land and bring the long term capital gains to tax - HELD THAT:- Khasra revealed that there was standing crop of wheat and jwar on the land at the time of transfer. AO in the order u/s 143(3)/148 had accepted the agricultural income of the assessee - there is no explanation as to how the mutation could have taken place in the Revenue record if the land was put to commercial use as on the date of sale. Merely because the land was near the area said to be developed as industrial by 2021, without any notification from the competent authority, it cannot be said that the land in question loses its character and status of being an agricultural land. It is not the case of the Revenue that any competent government had issued any notice changing the nature of land from rural agricultural land in order to apply the provisions u/s 54B of the Act. Having accepted the agricultural income of the assessee and having possession of the record at the time of passing the order u/s 147/143(3) of the Act, it seems that the learned AO failed to appreciate the fact that unless and until a competent Government issues a notification or the conversion of the use of land takes place, land with standing crop whose mutation had taken place in the Revenue record, cannot be said to be a non agricultural land. - Decided against revenue
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