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2016 (6) TMI 1425 - AT - Income TaxCharacter of the land sold by the assessee - lands covered under Hyderabad Airport Development Authority [HADA] - agricultural land OR capital asset u/s 2(14)(iii) - AO has considered HADA as a govt. notified local authority and concluded that it is a Municipality within the meaning of section 2(14)(iii)(a) - HELD THAT:- AO consideration HADA as a govt. notified local authority and concluded that it is a Municipality within the meaning of section 2(14)(iii)(a) which is not justified as the lands covered under HADA continue to be Gram Panchayats land. It is in record that the land sold by the assessee also does not fall within such distance of not being more than 8 kms from the local limit of any municipality or cantonment rather lands covered under HADA are more than 21 Kms from the municipal areas i.e. GHMC of Hyderabad. As in the case of T. Urmila [2012 (12) TMI 610 - ITAT HYDERABAD] wherein in a similar issue the Tribunal held on facts that HADA is not a local body and lands within HADA is not capital asset u/s 2(14)(iii) of the Act. This decision of the Coordinate Bench was upheld by the Hon'ble Hyderabad High Court when on an appeal by the Revenue in T. Urmila’s case was dismissed. That in the instant case, the land sold by the assessee is within the HADA and therefore, the character of the land is agricultural land - Decided against revenue.
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