Section 115JB of the Income-tax Act, 1961—Minimum alternate tax—Profit from sale of agriculture land which is not a "Capital Asset" cannot be included for purpose of computing book profit u/s 115JB.

Facts: The solitary grievance of the revenue involved in the appeal is exclusion of profit on sale of agricultural land while computing book profit U/s 115JB.

Held, that CIT(A)held that profit from sale of agriculture land which is not a "Capital Asset" cannot be included for purpose of computing book profit u/s 115JB. The agriculture land so sold by the assessee does not fall into category in item (a) or item (b) of sub clause (iii) of section 2(14) as this land was situated more than 17 KM from municipal limit, therefore by virtue of definition of agricultural income given under section 2(1A) read with Explanation 1, the income arising from the transfer of this land is agricultural income. In view of the above facts and circumstances, we do not find any infirmity in the order of CIT(A) for holding that the gain arising from sale of agricultural land cannot be taxed U/s 115JB. In the result, appeal of the revenue is dismissed. - DY. CIT V/s MOTISONS BUILDTECH (P.) LTD. - [2020] 182 ITD 072 (ITAT-JAIPUR)