Section 2(14)(iii)(b) of the Income Tax Act

If agricultural operations are being carried out on land at the time of sale and revenue records indicate it is agricultural land, a presumption arises that it is agricultural in character, which the revenue must rebut. Permission to convert land to non-agricultural use does not render it non-agricultural if not obtained before the sale.

If land is recorded as agricultural land in revenue records, it is considered agricultural land for tax purposes, entitling the assessee to exemption from tax.