Sale of rural agriculture land

ravi thanvi (self practice) (74 Points)

13 October 2017  

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?