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2014 (4) TMI 103 - AT - Income TaxCapital asset u/s 2(14) – agriculture land or not - Whether, AO erred in considering agricultural land of assessee as capital asset u/s 2(14) - Held that:- Piece of agricultural land sold by assessee is situated within 8 kms of Municipal limits but the population of that municipality is not more than 10,000 - For purposes of section 2(14)(iii) of Act, a specific gazette notification dated 6.1.1994 has been issued by Central Government – As per notification, if any agricultural land which is situated within 8 kms of a notified municipality etc, it will be treated as a capital asset, subject to condition that population of that Municipality - If case piece of agricultural land falls within 8 km of stated municipality, but population of that municipality is not more than 10,000 , then in that case agricultural land sold cannot be treated a as capital asset - Therefore, in given facts and circumstances of this case, it would be apt to restore this issue to file of A.O. with direction that he must decide this issue in specific light of our above stated observations - Matter remanded back - Decided in favor of Assessee.
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