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2016 (12) TMI 610 - AT - Income TaxGain on sale of land - nature of land - agricultural land or capital asset within the meaning of Section 2(14)(iii) - measurement of distance - Held that:- The position in law is clear that section 2(14)(iii)(b) of the Act covers the situation where the subject land is not only located within the distance of 8 kms from the local limits, which is covered by Clause (a) to section 2(14)(iii) of the Act, but also requires the fulfillment of the condition that the Central Government has issued a notification under this Clause for the purpose of including the area up to 8 kms, from the municipal limits, to render the land as a "Capital Asset.There is no amendment or withdrawal of the said notification except the amendment brought in the statute by the Finance Act 2013 whereby the requirement of said notification has been dispensed with. The amendment by the Finance Act 2013 is with effect from 01-04-2014 and therefore, applies prospectively in relation to the assessment year 2014-15 and subsequent assessment years. For the year under consideration, the distance has to be measured by the approach road. The amendment brought in by the Finance Act, 2013 to measure the distance aerially is effective from 01- 04-2014 and therefore, applies prospectively in relation to the assessment year 2014-15 and subsequent assessment years. we find that the matter require fresh examination taking into consideration the above legal proposition. We accordingly, set-aside the matter to the file of AO to examine the matter a fresh after giving reasonable opportunity to the assessee. - Decided in favour of assessee for statistical purposes only.
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