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2018 (5) TMI 901 - ITAT DELHIReopening of assessment - nature of land sold - undisclosed capital gain - Held that:- To measure the distance from the radius of municipal corporation, the relevant date would be the date of notification and the date of notification is 06.01.1994. It can be safely concluded that if on 26.11.2015 the distance was more than 10 kms as per the certificate of the Tehsildar, it can never be within 8 kms on the date of notification i.e. 06.01.1994. Therefore, the basis for reason to believe that income has escaped assessment is factually incorrect. Since the impugned land was not an asset within the meaning of section 2(14) of the Act, there was no question of showing any capital gain in the return of income. This basis of reopening of the assessment is also invalid, which leads to the quashing of the assessment order. Moreover, the reasons recorded, as mentioned elsewhere, the AO has taken the cost of acquisition at ₹ 1 lakh as on 1.1.1980. We fail to understand under which provisions of the Act the AO has estimated the cost of acquisition of the land as on 1.1.1980. - Decided in favour of assessee.
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