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2013 (4) TMI 395 - AT - Income TaxWhether agricultural land held by these two assessees are capital asset within the meaning of Section 2(14)(ii)(b) by adopting the ariel distance by straight line method instead of road distance - Held that:- Following the decision of Commissioner of Income Tax Versus Satinder Pal Singh [2010 (1) TMI 752 - Punjab and Haryana High Court] & many other judgments this ground of these two assessees in both the appeals is allowed by holding that the distance of 8km has to be measured through approach road and not by straight line method on horizontal plane and if through approach road the distance is taken, then it is seen that the distance is beyond 8 km from the municipal limit. Accordingly, no capital gain is payable as the agricultural land sold is not a capital asset within the meaning of Section 2(14)(iii)(b) of the Act. Once held this was an agricultural land and, therefore, any consideration out of sale of agricultural land, which is not assessable as the land was situated beyond 8 kms., therefore, the direction of the learned CIT(A) that the surplus may be treated as business income, has become now meaningless.
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