Capital gain on sale of agriculture land

Dear Sir,

I am now facing problem to decision in the following matter.

One of our clients sold an Agricultural land which is coming under the Definition of Agriculture land U/s. 2 (14). But the propblem is that there was a house also in the sold agricultural land. Client has neither purchased any agriculture or Residential property out of the sales proceedings. Whether this sale of property along with Residential House is Taxable in the Head Capital Gain?

Replies (2)

If the land is clearly agricultural ( i.e agricultural operations were carried out in it) then the building attached to the land is laso agricultural. Unless the building was used for any non agricultural commmercial purposes.

Thank you Sir,

To argue the same, can i have any section reference or any case laws. Please provide if possible.

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