SEO Sai Gr. Hosp.
211715 Points
Posted on 02 November 2019
No clear cut solution.
Generally Assessing officer will assess it as taxable gains.
Various courts have different judgements over the issue. So, it differs from case to case.
In the case Commissioner of Income-tax Vs. Sashiben [2007] 288 ITR 319 (Guj) where in it was held that: “if the land is recorded as agricultural, it would continue to be agricultural land. If the land is so recorded and it has not been put to any other use by the holder/owner of the land and even I it remains barren or uncultivated for some time and even grass is raised on the land, it would continue to be agricultural land.”
Read more at: https://www.caclubindia.com/forum/capital-gains-on-barren-land--38299.asp
In the case Commissioner of Income-tax Vs. Sashiben [2007] 288 ITR 319 (Guj) where in it was held that: “if the land is recorded as agricultural, it would continue to be agricultural land. If the land is so recorded and it has not been put to any other use by the holder/owner of the land and even I it remains barren or uncultivated for some time and even grass is raised on the land, it would continue to be agricultural land.”
Read more at: https://www.caclubindia.com/forum/capital-gains-on-barren-land--38299.asp
would like to add to the matter discussed herein. In the case Commissioner of Income-tax Vs. Sashiben [2007] 288 ITR 319 (Guj) where in it was held that: “if the land is recorded as agricultural, it would continue to be agricultural land. If the land is so recorded and it has not been put to any other use by the holder/owner of the land and even I it remains barren or uncultivated for some time and even grass is raised on the land, it would continue to be agricultural land.”
Read more at: https://www.caclubindia.com/forum/capital-gains-on-barren-land--38299.asp
would like to add to the matter discussed herein. In the case Commissioner of Income-tax Vs. Sashiben [2007] 288 ITR 319 (Guj) where in it was held that: “if the land is recorded as agricultural, it would continue to be agricultural land. If the land is so recorded and it has not been put to any other use by the holder/owner of the land and even I it remains barren or uncultivated for some time and even grass is raised on the land, it would continue to be agricultural land.”
Read more at: https://www.caclubindia.com/forum/capital-gains-on-barren-land--38299.asp
As a thumb rule, if the land had ever been cultivated by seller, anytime during its holding, and if revenue record it is not recorded as 'NA LAND'; you have quite better chances...
For some more clarification refer ...
https://www.caclubindia.com/forum/capital-gains-on-barren-land--38299.asp
&/or https://indiankanoon.org/doc/1323891/
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