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2018 (8) TMI 1946 - AT - Income TaxExemption u/s 10(37) - LTCG on sale of land - Nature of land sold - land in question as compulsory acquisition by the SMC under the direction of Government of Gujarat - HELD THAT:- Respectfully following the decision of Co-ordinate Bench in the case of ITO v. Dipak Kalidas [2015 (8) TMI 1268 - ITAT AHMEDABAD] which has been confirmed by the Hon`ble Jurisdictional High Court of Gujarat [2016 (4) TMI 431 - GUJARAT HIGH COURT] we hold that the land in question was compulsory acquisition by the SMC under the direction of Government of Gujarat. Hence, conditions stipulated in section 10(37) is satisfied. In view of above facts and circumstances, we hold that the land was being cultivated for agricultural purpose before 2 years of immediately preceding of date of sales by the tenants of land and land was compulsory acquired by SMC, hence, conditions as laid down in section 10(37) are duly satisfied. Accordingly, the assessee is eligible for exemption under section 10(37) of the Act. Consequently, the addition made by the AO on account of long-term capital gain is not taxable and is therefore, deleted. In view of this, ground of appeal of the assessee are allowed.
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