| The Tax Publishers2020 TaxPub(DT) 3715 (Jp-Trib) INCOME TAX ACT, 1961
Section 56(2)(vii)(b)(ii)
Since agricultural land purchased by assessee was situated at a distance of 28 KM from Municipal Limits of Kota, therefore, same was not a ''capital asset'' as per section 2(14) and it was not covered by the definition of ''property'' given in explanation to section 56(2)(vii)(b), accordingly, no addition could be made.
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Income from other sources - Addition under section 56(2)(vii)(b) - Purchase of agricultural land situated at a distance of 28 KM from Municipal Limits of Kota for consideration less than stamp duty value -
AO noticed that agricultural land purchased by assessee for a total consideration of Rs. 40,94,290 was valuing at Rs. 1,18,68,825 for stamp duty purposes. Therefore, AO made addition of differential amount of Rs. 77,74,535, applying section 56(2)(vii)(b)(ii) holding that agricultural land was very well covered under the term ''immovable property'' within the purview of section 56(2)(vii)(b)(ii). Held: Any property which is not a ''capital asset'' is not covered within the meaning of ''movable'' or ''immovable properties'' under section 56(2)(vii). In the instant case, agricultural land purchased by assessee was situated at village Mandana, situated at a distance of 28 KM from Municipal Limits of Kota. Therefore, agricultural land purchased was not a ''capital asset'' as per section 2(14) and it was not covered by the definition of ''property'' given in explanation to section 56(2)(vii)(b). Accordingly, AO was directed to delete addition.
REFERRED :
FAVOUR : in assessee's favour
A.Y. : 2014-15
INCOME TAX ACT, 1961
Section 69A
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