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2009 (11) TMI 63 - HC - Income TaxNature of land – deduction u/s 54B – agriculture land - In the Financial Year 1995-96 relevant to Assessment Year 1996-97, late Smt. Phusha Devi wife of Jug Lal had sold her agricultural land situated in Village Fazilpur, Jharsa for a sum of Rs.89,75,000/-. After her death, notices under Section 148 were issued to her legal heirs. In response to that, a return was filed showing the net taxable income of Rs.37,000/-. In the said return, the long term capital gain was shown as nil. In order to claim that the agricultural land owned and sold by the assessee did not fall in the definition of “Capital Assets” as defined in Section 2(14)(iii) of the Income Tax Act, 1961, the assessee produced a certificate from Tehsildar, Gurgaon to the effect that the land of the assessee was situated beyond 8 Kms. from the Gurgaon municipal limits. The Assessing Officer while not accepting the said report and while relying upon the report given by the Inspector, did not accept the assessee's contention of exemption under Section 54B and determined the capital gain to the tune of Rs.86,65,900/- in the assessment order – held that - without the help of the revenue officials, it is difficult for a person to identify the land and then to measure the distance of the said land with the municipal limits. – CIT(A) and ITAT accepted the the report dated 16.1.2004 given by the Tehsildar – exemption to be allowed – decided in favor of assessee
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