INCOME FROM SALE OF AGRICULTURAL LAND TAXABLE AS BUSINESS INCOME IF ASSESSEE IS DEALING IN PROPERTIES
• What is an Agricultural Land?
An Agricultural land is a land on which agricultural activities are carried out. Agricultural Activity has been held to be an activity where human effort has resulted in growing crops.
• Whether Sale of Agricultural Land result in Business Income?
Sec.2(14) Defines Capital Asset. This Section provides that Capital Asset Does not include Agricultural Land, however if the land is held as Stock in trade the sale of such land will result in Business income.
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