Sale of rural agricultural land - Land conversion prior to sale - Applicability of Section 50C

Facts:

Assessee sold a rural agricultural land at lower than the jantri stamp value rates. There was a condition in the sale that the land ought to be converted into non-agricultural land prior to sale with the buyer bearing the cost of the same. AO sought to invoke Section 50C in a reassessment under Section 147 by adding the difference between the stamp value and the sale value. Plea of the assessee was that it was a rural agricultural land thus Section 50C itself was not applicable. On higher appeal -

Held in favour of the assessee since the land was agricultural land it was not a capital asset in the first place - Applicability of Section 50C was incorrect.

Case: Anilkumar Kantilal Trivedi v. ITO 2023 TaxPub(DT) 1833 (Ahd-Trib)