7/12 utara having rice & grass combined is agriculture land?

Tax queries 255 views 2 replies

7/12 Utara of Assessee is showing cultivation of Rice in 31% portion of land and balance 69% as plain grass. This land is anchestral land and is 13 kms from Municipal Limits. This land was sold by the Assessee. Whether this land will be treated as Agricultural land for the purpose of Income Tax?

Also, whether partial cultivation of Rice and remaining portion as plain grass affects the nature of land being not treated as Agriculture Land?

If there are any Caselaws relating to the subject, kindly post.

Thank You,

Anand Bagade

Replies (2)

Agricultural land: 1) its areable 2) In revenue records its agricultural (and not non-agricultural)

Refer: 1. Smt. Sarifabibi Mohmed Ibrahim v. Commissioner of Income-tax : (1993) 204 ITR 631(SC)

2. CWT v. Officer-in-charge ( Court of Wards) [1976] 105 ITR 133 (SC)

 

 

Circular No. 2(WT) of 1968 dt. 16/03/1968

A land may be treated as Agricultural land if the following conditions are satisfied;

1. Land Revenue/Agricultural cess is paid.

2. Agricultural operations are carried out from year to year.

3. It has not been put to non-agricultural use.


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