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2021 (5) TMI 424 - AT - Income TaxAddition on account of short term capital gain u/s 50C - sale of agricultural land by observing that the land sold by the appellant are capital assets within the meaning of section 2(14)(iii) of the Act and liable for capital gains - assessee claimed that the land in question was agricultural land under the provision of section 2(14)(iii) of Act being situated beyond 8 km from the limit of the Municipal Corporation - HELD THAT:- In the case on hand, the ld. CIT-A has given a very clear finding that the land in dispute was not used for the agricultural. The land was sold after the purchases within a short span of time. Thus a cumulative reading of the facts as discussed above, it is transpired that the assessee was not intending to use the land in dispute for the purpose of agricultural operations. Before parting, there is no information available on record whether the land in dispute was used for the agricultural operations prior to the date of purchase by the assessee viz a viz whether the land in dispute was to be used for agricultural operations in future by the buyer of the land from the assessee. To our understanding, the information for the prior and the future use of the land was necessary to arrive at the conclusion whether the land in dispute was an agricultural land within the meaning of the provisions of section 2(14). We are inclined to restore the issue to the file of the AO for fresh adjudication as per the provisions of law and in the light of the above stated discussion. Hence the ground of appeal of the assessee is allowed for the statistical purposes.
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