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2014 (11) TMI 338 - AT - Income TaxLTCG Transaction of sale of agricultural land land constitutes agricultural land or not Held that:- Assessee has purchased agricultural land and put to agricultural use as such earlier - This fact was admitted by AO in the order itself - Even though AO considered that amount spent towards development of agricultural land, the fact was that it was spent for ratification deed and not for any development activity on the agricultural land - assessee has sold only agricultural land which was also used and put to agricultural use earlier and the purpose for which the purchaser utilized the land cannot be considered as an evidence of change of nature of land as was considered by AO - CIT(A) rightly was of the view that the intention of the purchaser has nothing to do with the nature of land so sold by the seller at the time of sale - what the assessee sold during the year to the purchaser is agricultural land and this was evidenced and certified by the revenue records CIT(A) rightly followed the decision in ClT v. Debbie Almao and Joaqyam Atrnao [2010 (9) TMI 560 - Bombay High Court] - no capital gains arises on the sale of agricultural land even though purchaser purchased the property with an intention of selling it for non-agricultural purposes - assessee's land was used as agricultural land and is away from GHMC limits beyond 8 KMs, the transaction does not give rise to taxable capital gains Decided against revenue.
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