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2019 (1) TMI 220 - HC - Income TaxProfit on the sale of agricultural land as exempt u/s 2(14) - nature of land sold - profit earned by the assessee on sale of agricultural land as business income - Held that:- On appreciation of evidence, Tribunal has specifically observed and held that the transaction carried out by the assessee was not "adventure in the nature of trade" and therefore, profit earned was not required to be taxed as business income. The aforesaid is the finding recorded by the learned Tribunal on appreciation of evidence. The land was sold as an agricultural land and in fact, what was sold was agricultural land. What was the intention of the purchaser cannot be the determinative factor to treat the profit earned by the assessee on sale of agricultural land as business income. Similarly, merely because for whatever reason, the assessee has earned sufficiently huge amount of profit also cannot be a ground to treat the profit earned by the assessee on sale of agricultural land as business income. Tribunal has not committed any error in directing the Assessing Officer to treat the profit of ₹ 1,20,21,138 earned by the assessee on the sale of agricultural land as exempt under section 2(14) of the Income tax Act. - Decided in favour of assessee
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