My uncle had a rural agriculture land and he sold such land for Rs.62,00,000/- in py.2014-15 ay 2015-16. He showed such sale under exempt income as sale of rural agriculture land is exempt since it is not a capital asset. The land was use for agricultural purpose and accordingle 7/12 was there, however in the currentht year he got a notice u/s 142(2) for scrutinee assesseement , he sold the land to farmer ho converted the land into N.A and used such land for real estate pupose.
the assessing officer is treating such sale as ":Adventure in the nature of trade"
however asseseee got such land from ancestors and sold such land as agriculture land
is the contention of A.o is right?
CAclubindia
