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Facts
The appellant sold agricultural land. The Assessing Officer treated it as a capital asset and levied capital gains tax. The appellant contended that agricultural land is not a capital asset.
Held
The Tribunal held that the agricultural land sold by the assessee was not a capital asset. Consequently, no capital gains tax liability could be assessed.
Key Issues
Whether agricultural land is a 'capital asset' under the Income Tax Act for the purpose of capital gains tax.
Sections Cited
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As we have held that the agricultural land sold by the assessee was not a capital asset and hence no capital gain tax liability can be assessed, the other grounds of appeal have become infructuous on which we are not rendering our opinion. In the result, appeal of the assessee is allowed.