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2022 (3) TMI 830 - AT - Income TaxLTCG - whether assessee`s land is agricultural land or not? - Distance from the the municipal limits - Whether agricultural land sold is not a “capital asset” within the meaning of section 2(14) of the Act, and hence no Capital Gains is chargeable to tax? - FMV determination - adopting the cost of acquisition as on 1/4/1981 - Fair Market Value (FMV) as on 01- 04-1981 to be taken as cost of acquisition - HELD THAT:- We note that there is no dispute regarding sale consideration agreed/received by the assessee. Only issue of disagreement between the assessing officer and the assessee is the FMV as on 01-04-1981 to be taken as cost .of acquisition. As in the case of Akash Deep Farms Pvt. Ltd [2016 (9) TMI 918 - ITAT AHMEDABAD] for the AY.2009-10, on identical and similar facts, whereby the issue relating to agricultural land sold was not treated a capital asset, within the meaning of section 2(14) of the Income Tax Act. The disputed issue whether the distance for identifying geographical location of the agricultural land is to be taken by road or by aerial and whether the municipal limits enhanced by the State Government is to be considered as starting point or it has to be taken from notification issued by the Central Government dated 06.01.1994 etc., have been discussed and adjudicated. The Coordinate Bench held that notification issued on 06.01.1994 by the Central Government is to be considered and therefore the Coordinate Bench has decided the issue in favour of the assessee. We find no reason to interfere in the said order of the Coordinate Bench, therefore, respectfully following the binding precedent of the Coordinate Bench in case of Akash Deep Farms P. Ltd. (supra), we delete the addition made by the Assessing Officer on account of Long Term Capital Gain (LTCG). - Decided in favour of assessee.
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