TMI Blog2013 (5) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... ersonal cultivation as accepted in agricultural land tenancy laws also recognizes, as can be seen from the statutory provisions contained in the Bombay Tenancy and Agricultural Lands Act, 1948, cultivation of a land through hired labourer or through member of one’s family. Merely because the assessee was not residing close to the land or was also pursuing some other business would not by itself be sufficient to hold that the land was not used for agricultural purposes by the assessee. The Tribunal recorded that in the earlier years, the assessee had declared agricultural income, which was also accepted by the Revenue. Under the circumstances, the Tribunal correctly ruled in favour of the assessee. No question of law arises. The tax appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ground that the land in question was situated within the municipal limits of Gandhinagar, which had population of more than 10000. Section 10(37) of the Act therefore, does not apply to the assessee. 4. The assessee thereupon approached the CIT (Appeals), who dismissed the appeal. He agreed with the assessee that exemption under section 10(37) of the Act would be available also to agricultural land situated in urban area, but he held that such exemption would be subject to fulfillment of certain conditions. One of them being that such land, during the period two years immediately preceding the date of transfer was used for agricultural purpose by such Hindu undivided family or individual or his parent. In the present case, he was of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to this extent was not tenable. However, he was of the view that such exemption u/s 10(37) was available on fulfillment of certain conditions. One of the vital conditions, according to him, for such exemption was that such land during the period of two years immediately preceding the date of transfer, was being used for agricultural purpose by such hindu undivided family or individual or parent of his and then he went on to say that since assessee was staying away from these agricultural lands and was also involved in some business activities, he could not have carried out agricultural activities himself and therefore, exemption u/s 10(37) was not available to him. In our considered opinion the plain reading of section 10(37)(ii) does not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gains on transfer of capital assets. 7. Section 10(37), however, grants exemption from payment of capital gains on transfer of agricultural land under certain circumstances. Section 10(37) reads as under: 10(37) in the case of an assessee, being an individual or a Hindu undivided family, any income chargeable under the head Capital gains arising from the transfer of agricultural land, where- (i) such land is situate in any area referred to in item (a) or item (b) of subclause (iii) of clause (14) of section 2; (ii) such land, during the period of two years immediately preceding the date of transfer, was being used for agricultural purposes by such Hindu undivided family or individual or a parent of his; (iii) such ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
