capital gain on agricultural land being sold in plots

if that agriculture land is in rural area and it satisfied the defination of rural area as per income tax act then the capital gain out of selling that land is exempted otherwise taxable

If Capital gain is falling within the defination of capital asset u/s 2(14).
i.e. within the limit of muncipalty etc.
within 2/6/8 KM. of muncipalty as the case may be. for less than 100000 / 100000 or more but less than 1000000 / more than 1000000 population. It would result in Transfer of asset. and Cap Gain are taxable. However As per section 45(2) they are being converted into stock in trade, therefore are taxable in the year of Sale.
Here both business income and Capital Gain will be taxable.

anurag lohiya sir as the property is inherited the cost of aquisition is nil ,so it does not fall under the definition of business..

See section 49(1) COA shall deemed to be as it is as it was in the hands of Predessesor. In your case it is NIL.

as far as the business income is concerned it will be treated as business income subject to the descreation of AO.
And the difference between Transfer value and Sale value shall be chargeable to rax u/H PGBP by vertue of section 28.

no capital gains since sec 2(14) does not attract agricultural land in rural area

 If  fragmentation (seems here  to be without legal permission from authorities)is done by son( or in case may be father) has been done prior to 2016; then  base valuation is not nil , but has to be derived  through registered valuer   on date of inheritance (here in case received from from father) vis a vis valuation on 01.4.1981,and Cpaital gains has tbe assessed sepeartely .2017 Onwards  land valuation  as on 01.04.2001 has to be derived  for LTCG and bsuiness income  sepeartely