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| The Tax Publishers2020 TaxPub(DT) 0858 (Bang-Trib) INCOME TAX ACT, 1961
Section 2(14)
Village where subject piece of land was situated, had been ascertained by BDA as residential zone. Also, assessee submitted that he did not convert said land for non agricultural purposes, however, on the other hand, assessee had not established by way of documentary evidences that it was agricultural land. Therefore, piece of land was a capital asset, capital gains had to be computed.
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Capital gains - Capital asset - Assessee claiming the piece of land to be situated beyond 8 kms. from municipal limits- Village where subject piece of land was situated, had been ascertained by BDA as residential zone -
Assessee sold certain property but did not offer resulting profit to tax. AO taxed the same as short term capital gain. Assessee's case was that said property was agricultural land situated beyond beyond 12.6 km. from BBMP limits and was, therefore, not a capital asset as per section 2(14) and hence capital gains were not attracted. Held: Village where subject piece of land was situated, had been ascertained by BDA as residential zone. Also, assessee submitted that he did not convert said land for non agricultural purposes, however, on the other hand, assessee had not established by way of documentary evidences that it was agricultural land. Therefore, piece of land was a capital asset, capital gains had to be computed, however, after granting indexation benefit as it was sold after holding for more than 36 months.
REFERRED :
FAVOUR : Against the assessee.
A.Y. :
INCOME TAX ACT, 1961
Section 36(1)(iii)
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