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2015 (1) TMI 776 - ITAT HYDERABADAgricultural v/s non agricultural land - situation of lands in any area within such distance not being more than 8 kms from the local limits of any municipality or cantonment board - whether assessee’s 16 acres 24 guntas land, 3 acres can be held as non agricultural land and the balance 13 acres can be treated as agricultural land? - Held that:- It was submitted that 1 acre 20 guntas could be taken as land put to use by each of the brothers and not 3 acres in the case of Raghavalu alone. We find merit in the arguments of the ld Counsel. The CIT (A) cannot presume that another 1 acre 20 guntas are to be set apart by the assessee over the above 1 acre 20 guntas used by the assessee for storage of metal stone crushers and stocking yard for spalls, metal, metal dust, labour quarters etc. The excess of 1 acre 20 guntas wrongly looked by the CIT (A) towards metal stone crushers and stocking yard for spalls, metal, metal dust, labour quarters etc.could be kept for the purpose of cultivation of land and growing of crops. It seems that the ld CIT (A) has got confused about the extent of 3 acres being jointly held by the brothers and hence observation. Therefore, we clearly conclude that in our opinion, 1 acre and 20 guntas of land are taxable in the case of Shri Raghavalu, while the rest are exempt as they are covered by the provisions of section 2(14)(iii) of the I.T. Act. We direct the AO to rework the relief to the assessee accordingly. Decided partly in favour of assessee.
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