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2014 (10) TMI 662 - HC - Income TaxLiability to pay capital gains tax or not Agricultural land or not - Assessee acquired rights vis-a-vis an item of immovable property of agricultural land Held that:- The rights were acquired by the assessee through MOU, dated 25.12.1993 vis-a-vis the property - the Tribunal rightly found that the possession of the property was delivered in favour of the person, who joined the transaction - Those facts in turn brought about transfer within the meaning of Section 2(47)(v) of the Act - Therefore, the assessee has acquired a right to transfer the same atleast from the point of view of income tax - The sale proceeds to the extent of the share of the asseessee would certainly answer the description of capital gains - However, the classification of the land as the one of agricultural in nature, exempts the assessee from the obligation to pay the capital gains tax AO did not undertake the required amount of discussion vis-a-vis the nature of rights, which the respondent had acquired through the MOU and parted with other documents - notwithstanding the expressions used either by the assessee or by the officers and authorities under the Act, they are in relation to an item of immovable property and that property in turn is an agricultural land thus, there was no merit in the appeal Decided against revenue.
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