A company 4 years back purchase a piece of land of whihc one part was being used by seller for agricultral operations and other part was a baron land. The land is situated beyond 8 kms of limits of municipal. The company did not carry any agricultural activities on teh land. Now the company sold tha land and in the sale document the descripttion of land is mentioned as baron land. The land is not diverted so far as non agriclutural land. Please enlighten me as to whether the said land would be outside the purview of the definition of capital asset u/s 2(14) or not. Thanks
CAclubindia
