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2019 (1) TMI 1262 - ITAT DELHIAddition in respect of Long Term Capital Gain arising on sale of land - nature of land sold - whether the land was agriculture land or not? - agricultural land situated in rural area or in the urban area - Held that:- Delhi Municipal Corporation with previous approval of the government by notification can declare any portion of the rural areas to form part of the urban area. Ergo, once the Delhi Municipal Corporation Act, 1957 provides powers to the Government to notify and convert any rural area to Urban area, then the entire observation of the CIT (A) that, since Village Chhawla is governed under Delhi Municipal Act, 1957, and therefore, it is an urban land even 10 years prior to the notification. Such an inference is wholly untenable. Accordingly, in view of the government notification, hold that the said land was situated in a rural area, and therefore, sale of such agriculture land falls within the ambit and scope of Section 2(14)(iii) and hence no capital gain can be charged u/s.45. Accordingly, the addition made by the AO stands deleted. - Decided in favour of assessee.
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