Subsequent Conversion by Purchaser Does Not Change Character of Agricultural Land Sold by Assessee: ITAT says No Capital Gain Tax Attracted

The ITAT has ruled that a "subsequent conversion by a purchaser does not change the character of agricultural land sold by an assessee," and that "no capital gain tax is attracted." This is a significant ruling that reinforces the principle of procedural fairness in insolvency proceedings. The court's decision, which is a significant victory for the government, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a company can be held responsible for the misdeeds of another person.