TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Income Tax Income Tax + SC Income Tax - 1993 (9) TMI SC This

  • Login
  • Cases Cited
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

1993 (9) TMI 10 - SC - Income Tax


  1. 2006 (3) TMI 727 - SC
  2. 1996 (3) TMI 8 - SC
  3. 2025 (6) TMI 1945 - HC
  4. 2025 (2) TMI 658 - HC
  5. 2024 (11) TMI 573 - HC
  6. 2022 (9) TMI 308 - HC
  7. 2022 (8) TMI 249 - HC
  8. 2022 (2) TMI 1146 - HC
  9. 2020 (12) TMI 782 - HC
  10. 2020 (10) TMI 38 - HC
  11. 2019 (8) TMI 17 - HC
  12. 2020 (1) TMI 298 - HC
  13. 2019 (6) TMI 51 - HC
  14. 2019 (3) TMI 1123 - HC
  15. 2019 (1) TMI 867 - HC
  16. 2018 (12) TMI 216 - HC
  17. 2018 (8) TMI 1319 - HC
  18. 2018 (7) TMI 1621 - HC
  19. 2018 (7) TMI 1413 - HC
  20. 2017 (12) TMI 1358 - HC
  21. 2018 (1) TMI 277 - HC
  22. 2017 (10) TMI 387 - HC
  23. 2017 (8) TMI 532 - HC
  24. 2017 (8) TMI 616 - HC
  25. 2017 (6) TMI 603 - HC
  26. 2017 (1) TMI 1209 - HC
  27. 2016 (9) TMI 208 - HC
  28. 2016 (9) TMI 115 - HC
  29. 2016 (9) TMI 858 - HC
  30. 2016 (5) TMI 641 - HC
  31. 2014 (12) TMI 66 - HC
  32. 2007 (1) TMI 149 - HC
  33. 2005 (3) TMI 46 - HC
  34. 1997 (4) TMI 21 - HC
  35. 1996 (2) TMI 541 - HC
  36. 1993 (10) TMI 41 - HC
  37. 2025 (6) TMI 634 - AT
  38. 2025 (5) TMI 1953 - AT
  39. 2025 (4) TMI 1221 - AT
  40. 2025 (3) TMI 523 - AT
  41. 2025 (6) TMI 1449 - AT
  42. 2024 (11) TMI 1023 - AT
  43. 2025 (3) TMI 21 - AT
  44. 2023 (12) TMI 1199 - AT
  45. 2023 (11) TMI 787 - AT
  46. 2023 (5) TMI 1270 - AT
  47. 2023 (4) TMI 1047 - AT
  48. 2023 (1) TMI 968 - AT
  49. 2023 (1) TMI 322 - AT
  50. 2022 (11) TMI 312 - AT
  51. 2022 (12) TMI 631 - AT
  52. 2022 (10) TMI 224 - AT
  53. 2022 (9) TMI 412 - AT
  54. 2022 (9) TMI 147 - AT
  55. 2022 (8) TMI 523 - AT
  56. 2022 (9) TMI 673 - AT
  57. 2022 (7) TMI 1155 - AT
  58. 2022 (5) TMI 1173 - AT
  59. 2022 (7) TMI 887 - AT
  60. 2022 (5) TMI 43 - AT
  61. 2022 (4) TMI 1609 - AT
  62. 2022 (4) TMI 1608 - AT
  63. 2022 (5) TMI 1403 - AT
  64. 2022 (4) TMI 1624 - AT
  65. 2022 (4) TMI 674 - AT
  66. 2022 (7) TMI 989 - AT
  67. 2022 (6) TMI 328 - AT
  68. 2022 (2) TMI 1246 - AT
  69. 2021 (10) TMI 695 - AT
  70. 2021 (9) TMI 921 - AT
  71. 2021 (5) TMI 424 - AT
  72. 2021 (4) TMI 46 - AT
  73. 2021 (3) TMI 587 - AT
  74. 2021 (1) TMI 560 - AT
  75. 2020 (10) TMI 21 - AT
  76. 2020 (9) TMI 236 - AT
  77. 2020 (1) TMI 770 - AT
  78. 2019 (12) TMI 1177 - AT
  79. 2019 (7) TMI 656 - AT
  80. 2019 (4) TMI 1981 - AT
  81. 2019 (2) TMI 707 - AT
  82. 2019 (1) TMI 1989 - AT
  83. 2018 (12) TMI 1756 - AT
  84. 2018 (12) TMI 274 - AT
  85. 2018 (11) TMI 1733 - AT
  86. 2018 (9) TMI 1546 - AT
  87. 2018 (7) TMI 1091 - AT
  88. 2018 (7) TMI 749 - AT
  89. 2018 (5) TMI 2132 - AT
  90. 2018 (5) TMI 2180 - AT
  91. 2018 (5) TMI 1870 - AT
  92. 2018 (3) TMI 1349 - AT
  93. 2018 (6) TMI 270 - AT
  94. 2018 (4) TMI 494 - AT
  95. 2018 (2) TMI 745 - AT
  96. 2018 (1) TMI 1514 - AT
  97. 2017 (9) TMI 1580 - AT
  98. 2017 (8) TMI 1301 - AT
  99. 2017 (5) TMI 1039 - AT
  100. 2017 (5) TMI 1688 - AT
  101. 2017 (6) TMI 1122 - AT
  102. 2017 (6) TMI 1117 - AT
  103. 2017 (3) TMI 1645 - AT
  104. 2017 (4) TMI 1005 - AT
  105. 2017 (2) TMI 1364 - AT
  106. 2017 (1) TMI 719 - AT
  107. 2016 (10) TMI 1231 - AT
  108. 2016 (9) TMI 704 - AT
  109. 2016 (9) TMI 948 - AT
  110. 2016 (8) TMI 1454 - AT
  111. 2016 (8) TMI 81 - AT
  112. 2016 (7) TMI 185 - AT
  113. 2016 (6) TMI 1425 - AT
  114. 2016 (6) TMI 175 - AT
  115. 2016 (6) TMI 518 - AT
  116. 2016 (4) TMI 1157 - AT
  117. 2016 (3) TMI 1118 - AT
  118. 2016 (3) TMI 744 - AT
  119. 2016 (2) TMI 738 - AT
  120. 2016 (5) TMI 322 - AT
  121. 2016 (3) TMI 491 - AT
  122. 2015 (12) TMI 44 - AT
  123. 2015 (11) TMI 1372 - AT
  124. 2015 (7) TMI 1140 - AT
  125. 2015 (6) TMI 561 - AT
  126. 2015 (5) TMI 971 - AT
  127. 2015 (6) TMI 480 - AT
  128. 2015 (7) TMI 173 - AT
  129. 2015 (11) TMI 951 - AT
  130. 2015 (4) TMI 220 - AT
  131. 2015 (4) TMI 669 - AT
  132. 2015 (4) TMI 331 - AT
  133. 2015 (3) TMI 887 - AT
  134. 2015 (3) TMI 836 - AT
  135. 2015 (3) TMI 758 - AT
  136. 2015 (3) TMI 642 - AT
  137. 2015 (6) TMI 831 - AT
  138. 2014 (12) TMI 9 - AT
  139. 2014 (11) TMI 338 - AT
  140. 2014 (9) TMI 85 - AT
  141. 2014 (9) TMI 124 - AT
  142. 2015 (3) TMI 186 - AT
  143. 2014 (7) TMI 133 - AT
  144. 2014 (10) TMI 353 - AT
  145. 2014 (10) TMI 35 - AT
  146. 2014 (6) TMI 944 - AT
  147. 2014 (4) TMI 707 - AT
  148. 2014 (3) TMI 1193 - AT
  149. 2015 (1) TMI 603 - AT
  150. 2014 (10) TMI 736 - AT
  151. 2014 (1) TMI 344 - AT
  152. 2013 (12) TMI 1549 - AT
  153. 2014 (1) TMI 20 - AT
  154. 2014 (1) TMI 396 - AT
  155. 2013 (10) TMI 928 - AT
  156. 2013 (10) TMI 927 - AT
  157. 2013 (9) TMI 611 - AT
  158. 2013 (9) TMI 376 - AT
  159. 2014 (2) TMI 733 - AT
  160. 2013 (8) TMI 1119 - AT
  161. 2013 (8) TMI 1136 - AT
  162. 2013 (8) TMI 595 - AT
  163. 2013 (8) TMI 760 - AT
  164. 2013 (8) TMI 833 - AT
  165. 2014 (1) TMI 750 - AT
  166. 2013 (10) TMI 594 - AT
  167. 2013 (4) TMI 830 - AT
  168. 2013 (2) TMI 770 - AT
  169. 2013 (1) TMI 912 - AT
  170. 2013 (1) TMI 838 - AT
  171. 2012 (12) TMI 610 - AT
  172. 2012 (10) TMI 1051 - AT
  173. 2012 (10) TMI 781 - AT
  174. 2012 (10) TMI 1094 - AT
  175. 2013 (12) TMI 444 - AT
  176. 2012 (10) TMI 603 - AT
  177. 2012 (12) TMI 520 - AT
  178. 2012 (10) TMI 710 - AT
  179. 2012 (4) TMI 672 - AT
  180. 2012 (4) TMI 627 - AT
  181. 2014 (6) TMI 494 - AT
  182. 2011 (10) TMI 484 - AT
  183. 2011 (10) TMI 469 - AT
  184. 2011 (7) TMI 1016 - AT
  185. 2011 (6) TMI 858 - AT
  186. 2011 (4) TMI 202 - AT
  187. 2009 (12) TMI 929 - AT
  188. 2008 (6) TMI 280 - AT
  189. 2007 (9) TMI 320 - AT
  190. 2006 (9) TMI 247 - AT
  191. 2004 (6) TMI 324 - AT
  192. 2003 (3) TMI 283 - AT
  193. 2001 (8) TMI 291 - AT
  194. 2001 (2) TMI 1025 - AT
  195. 1999 (10) TMI 98 - AT
  196. 1996 (5) TMI 110 - AT
  197. 1995 (6) TMI 67 - AT
Issues Involved:
1. Whether the land in question was agricultural land within the meaning of section 2(14) of the Income-tax Act, 1961.
2. Whether the tax on capital gains resulting from the sale of the land was leviable.

Issue 1: Whether the land in question was agricultural land within the meaning of section 2(14) of the Income-tax Act, 1961

The appellants, co-owners of a plot of land measuring 30,885 sq. yards, contended that the land was agricultural, thus exempt from capital gains tax. The land, situated within the municipal limits of Surat and one kilometer from the Surat railway station, had a portion converted to non-agricultural use in 1958. The remaining land continued to be registered as agricultural in revenue records, and land revenue was paid until the date of sale.

The appellants argued that the land was under actual cultivation until it was sold and that agricultural operations were carried out in the past. They also highlighted that the land was surrounded by agricultural lands and was never put to non-agricultural use, except for a portion converted in 1958.

The High Court, however, identified several factors against the appellants' claim:
1. Proximity to Surat railway station and within municipal limits.
2. Sale to a non-agriculturist for non-agricultural purposes.
3. Sale on a per sq. yard basis at Rs. 23 per sq. yard.
4. Absence of agricultural operations for the last four years before the sale.
5. Application for permission to sell for non-agricultural purposes made nine months before the sale.
6. Previous conversion of a portion of the land to non-agricultural use.
7. Commencement of construction by the purchaser immediately after the sale.
8. No agricultural operations since 1964-65.

The High Court concluded that the land was non-agricultural at the time of sale, despite being registered as agricultural in revenue records and the absence of formal conversion to non-agricultural use.

Issue 2: Whether the tax on capital gains resulting from the sale of the land was leviable

The appellants contended that the land was agricultural and thus exempt from capital gains tax. They argued that the land was registered as agricultural, land revenue was paid, and it was under cultivation until the sale. They also pointed out that the land was surrounded by agricultural lands and had no other income source except from this land.

The Revenue argued that the appellants had no intention of using the land for agricultural purposes after 1965-66, as evidenced by the agreement to sell the land for housing purposes, application for permission to sell for non-agricultural purposes, and the sale soon after obtaining permission. The land was not cultivated for four years prior to the sale, and the sale price and location indicated non-agricultural use.

The Supreme Court, after evaluating the facts and circumstances, concluded that the land was not agricultural at the time of sale. The court emphasized the importance of the intended use and actual condition of the land, rather than mere potentiality or registration in revenue records. The appellants' actions of entering into an agreement to sell for housing purposes, applying for permission to sell for non-agricultural purposes, and the absence of cultivation for four years prior to the sale, outweighed the factors in favor of the appellants' claim.

Conclusion:

The Supreme Court upheld the High Court's decision, concluding that the land was non-agricultural at the time of sale and thus subject to capital gains tax. The appeals were dismissed.

 

 

 

 

Quick Updates:Latest Updates