AIR 1993 SUPREME COURT 2585 ::1993 AIR SCW 3255 ::1993 TAX. L. R. 1105 ::(1993) 114 CurTaxRep 227 ::(1993) 114 CurTaxRep 467 ::(1993) IJR 376 (SC) ::(1993) 202 ITR 108 ::1993 (204) ITR 631 ::1993 (4) SCC(Supp) 707 ::1993 SCC (Supp) 4 707 ::1993 (3) SCJ 409 ::(1993) 71 Taxman 284 ::(1993) 70 Taxman 301 ::1993 (117) Taxation 256 ::(1993) 5 JT 257 (SC) ::1993 (5) JT 257

Supreme Court Of India

(From : 1982 Tax. L. R. 1395 (Gujarat))

Hon'ble Judge(s): B. P. Jeevan Reddy, S. P. Bharucha , JJ

(A) Agricultural land - Land situated within municipal limits - Registered as agricultural land in revenue records - Assesee owners entering into agreement for sale with Housing Co-operative Society - Obtaining permission of Revenue authorities for transfer for non-agricultural purpose - Sale immediately thereafter - Land not cultivated for 4 years preceding sale - Held, Land was not agricultural at time of sale - Assessee not exempt from capital gain tax. Income-Tax Act (43 of 1961) , S.2(14), S.47, S.54B— The Land in question was situated within municipal limits. It was registered as agricultural land in revenue records and land revenue in respect of the land was paid. The assessee owners entered into an agreement with a Housing Co-operative Society to sell the land. To enable them to complete the transaction, they (assessee-owners) applied for permission to transfer the land for non-agricultural purpose u/S. 63 of the Bombay Tenancy and Agricultural Lands Act 1948. Soon after obtaining the said permission assessee-owners executed sale-deeds in the following month. The land was sold at the rate of Rs. 23/- per sq-yd. and the purchaser-society commenced construction operations within three days of purchase. The land was not cultivated for four years preceding the sale. Held, the entering into the agreement to sell the land for housing purpose....