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2019 (6) TMI 341 - AT - Income TaxLTCG - capital assets in terms of section 2(14) OR agricultural land - applicability of section 50C - HELD THAT:- In this case it is evident from the record that at the time of sale the assessee’s land was more than 8 KMs away from the local limits of Municipal Council. CIT(A) was thus not correct in rejecting the additional evidence which was merely corroborative in nature as supported the earlier two letters from Tehsildar obtained by the AO in his inquiry; and in order to reconcile the same, assessee has filed a certificate from the revenue authorities. To adjudicate the issue and in the interest of justice same should have been admitted by the CIT(A). And more so, once AO was confronted with the said certificate and remand report was called for. Accordingly, it is held that assessee’s land cannot be treated as a capital asset in terms of section 2(14), because it was an agricultural land and was more than 8 KMs away from the local limit of the municipality and population was also less. Hence the chargeability of capital gain on sale of such agricultural land does not arise. The addition thus made is deleted. - Decided in favour of assessee.
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