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2013 (5) TMI 449 - HC - Income TaxExemption u/s 10(37) - whether said section require that the assessee should himself carry out the agricultural activities on the land? - assessee contended that in view of provisions of section 10(37) r.w.s. 45(5), no capital gain tax was payable as also allowed by ITAT - Held that:- Only ground on which the CIT (Appeals) held against the assessee was that he was staying away from the agricultural land and that he was otherwise engaged in a business. But neither of these two facts, either in isolation or cumulatively, would be sufficient to hold that such land was not being used for agricultural purposes by the assessee. The concept of personal cultivation as accepted in agricultural land tenancy laws also recognizes, as can be seen from the statutory provisions contained in the Bombay Tenancy and Agricultural Lands Act, 1948, cultivation of a land through hired labourer or through member of one’s family. Merely because the assessee was not residing close to the land or was also pursuing some other business would not by itself be sufficient to hold that the land was not used for agricultural purposes by the assessee. The Tribunal recorded that in the earlier years, the assessee had declared agricultural income, which was also accepted by the Revenue. Under the circumstances, the Tribunal correctly ruled in favour of the assessee. No question of law arises. The tax appeal is dismissed.
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