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2014 (3) TMI 1193 - AT - Income TaxGain on sale of land - nature of land sold - Agricultural land v/s capital asset - whether the land sold by the assessee is agricultural land and exempt from capital gain tax? - assessee claimed that the subject land sold to KSIDC is agricultural land, therefore, the gain / income cannot be treated as capital gain within the meaning of section 2(14) read with section 45? - HELD THAT:- It is not in dispute land sold by the assessee is actually used for agricultural purpose / activities. The land was a rubber estate and the assessee used the land for agricultural operation till the date of sale this Tribunal is of the considered opinion that the subject land is an agricultural land. Therefore, as found by the Madras High Court in the case of M.S. Srinivasa Naicker & Ors [2007 (1) TMI 149 - MADRAS HIGH COURT] the subject land is not a capital asset within the meaning of section 2(14) of the Act; hence, the assessee is not liable for capital gain tax. - Decided against revenue.
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