2023 (5) TMI 692 - AT - Income Tax

Computation of capital gain on sale of land - Nature of land sold - capital asset or agricultural land - appellant fails to convincingly pass the test of proving that the impugned land is indeed agricultural land - HELD THAT:- All evidences filed by the assessee including copies of purchase and sale deeds of land, revenue records maintained by the State Government, certificate issued by the Additional Tahsildar and Village Officer, clearly shows that the impugned land is an agricultural land and used for agricultural operations. The assessee had also filed other evidences to prove that the land has been used for agricultural operations till it was sold. Therefore, we are of the considered view that land sold by the assessee is an agricultural land and which is outside the scope of definition of capital asset as defined u/s. 2(14) of the Act. Thus, we are of the opinion that the Assessing Officer and the ld. CIT(A) are completely erred in denying exemption from tax towards consideration received for sale of agricultural land. Hence, we direct the AO to delete additions made towards computation of capital gains on sale of land. Appeal filed by the assessee is allowed.