Law:

Section:

Section 2(14)(iii), read with section 45, of the Income-tax Act, 1961 - Capital asset - Agricultural land - Assessment years 1967-68 to 1969-70 - Whether where assessee incurred no expenses in relation to agricultural operations on land in question and had petty sale proceeds from sale of mangoes and grass, land under consideration could not be said to be agricultural land for purpose of capital gains tax - Held, yes Facts The assessee had purchased a land in 1951 which was acquired by the Government in the accounting years relevant to the assessment years 1967-68 to 1969-70. The ITO assessed long-term capital gains for the said years rejecting the assessee's contention that the said land was agricultural land and as such any gain made thereon would not attract the provisions relating to capital gains. On appeal before the Tribunal, the assessee contended that the said land was agricultural land for the reasons that it was assessed to land revenue ; that it was utilised for the growth of mangoes and grass; that no certificate under section 230A had been called for by the Sub-Registrar of Assurances ; that extracts of its record of rights showed that paddy had been grown upon it in 1941-42 and 1942-43 and grass thereafter ; and that the Tahsildar concerned had issued a certificate stating that the lands bearing various survey numbers (which included the said land) were agricultural lands till the year 1966. The Tribunal, after considering the submissions of the assessee and the revenue and the relevant law, found that the details of agricultural expenses that had been filed by the assessee showed no expense in relation to agricultural operations on the said land. The details showed that there were only petty sale proceeds from the sale of mangoes and grass. This indicated that the assessee had been selling mangoes from such trees as had existed on the said land and the grass that grew spontaneously thereon. The Tribunal, thus, observed that in the absence of any evidence to show that the land was put to any agricultural use at any particular point of time even in the past apart from the sale of some mangoes and grass, it could not be held that the lands could be…

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