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2015 (4) TMI 1280 - AT - Income TaxGain on sale of land - capital gain or business income - HELD THAT:- Assessee is an agriculturist and did not carry on any business. The land was purchased as agricultural land way back in 1979. Agricultural operations were carried on for more than 20 years and the land was inherited by Assessee which is in the process of development. Necessary permission for conversion of land in to residential plots was sought by Assessee's mother and just because Assessee stepped into his mother's shoes, it cannot be considered that Assessee is in the business of purchasing and selling of plots, whereas, Assessee has only sold inherited land, therefore, intention to purchase for business was absent. Though, it may not be entirely relevant but we cannot ignore the fact that the sale proceeds/capital gains were invested in approved bonds, (NABARD Bonds) and were not invested in any business. Taxable as capital gains - Decided against the Revenue.
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