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2012 (12) TMI 596 - AT - Income TaxIncome from sale of Land - Capital Gain or business income – Whether land sold by assessee was agricultural land or capital asset – AO argued that the distance between Village and Municipal Corporation is less than 8 km - Held that:- As concluding from the fact of the case AO is not justified in treating the assessee’s solitary transaction of sale of part of its land holdings on ‘as it is and where it is’ basis without recording it as its stock-in-trade as assessee’s business income. Assessee’s land can be held as agricultural land situated beyond 8 kms outside the Gurgaon Municipal limits and that the area population of residents of the village Fazilpur Jharsa being below 10000, the assessee’s asset is outside the purview of capital asset. In favour of assessee Undisclosed Income – AO made addition as undisclosed income, instead of agricultural income as claimed by the assessee – AO argued that land was not cultivated and also the party to whom the agricultural produce was claimed to have been sold was nonexistent – Held that:- As the assessee had furnished a copy of Girdwari & certificate issued by the Sarpnach. As per these documentary evidences, the assessee had discharged its onus. Therefore, AO was not justified in rejecting assessee’s contention with regard to the said agricultural income. In favour of assessee
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