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2012 (11) TMI 902 - ITAT PUNEChargeability to Capital gain - Whether Land situated at Village Kharghar was a capital asset and enhanced compensation received is chargeable to tax - Held that:- Land in dispute is not an agricultural land as it is situated with in municipal limits within the meaning of section 2(14)(iii) as claimed by the assessee and is a capital asset - in favour of revenue. The liability to tax on capital gain would arise in respect of only those capital assets in the acquisition of which, an element of cost is either actually present or is capable of being reckoned and not in respect of those assets in the acquisition of which, the element of cost is altogether inconceivable. - CIT v. B.C. Srinivasa Setty [1981 (2) TMI 1 - SUPREME COURT] As the land in question was not having cost because the same was allotted to father of the assessee being refugee from Pakistan by Government of India at relevant point of time which is not in dispute. So the land in question was acquired by father of the assessee free of cost. Therefore, there is no question of capital gain on transfer of such land and enhanced compensation reeived is not chargeable to tax - in favour of assessee.
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