No question of law arises if ITAT held that gain on sale of agricultural land was taxable as business income: SC

Case Details: Sunil Bansal v. CIT - [2022] 141 taxmann.com 519 (SC)

Judiciary and Counsel Details

• • Hemant Gupta & V. Ramasubramanian, JJ.

Facts of the Case

The assessee filed its return of income, claiming that profit arising from the purchase and sale of agricultural lands could not be brought to tax in view of section 2(14)(iii). The Assessing Officer rejected the assessee’s claim.

The Tribunal, based on details of purchase and sale of lands and period of holding etc., concluded that the transaction of purchase and sale of agricultural lands carried out by the assessee was in nature of trade. Therefore, surplus/gain arising from the sale of agricultural lands was taxable as business income. The assessee appealed to the High Court against the Tribunal’s order.

High Court Held

The High Court held that since findings recorded by Tribunal were findings of fact based upon material available on record, no substantial question of law arose from there. The assessee filed a special leave petition (SLP) against High Court’s order, and the Supreme Court also dismissed SLP against the said order and denied considering the review petition.

List of Cases Reviewed

• • Review petition dismissed against Sunil Bansal v. CIT – II [2022] 138 taxmann.com 20 (SC) (para 3).