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2022 (9) TMI 308 - HC - Income TaxNature of land sold - capital asset or agricultural land - Deduction u/s 54F - Whether land sold by the appellant is not agricultural land and consequently the sale proceeds are not entitled for exemption? - Revenue, opposing the appeal submitted that the land in question is converted for Industrial purpose and the Assessing Officer has rightly held so HELD THAT:- Undisputed facts of the case are, the land in question has been converted for Industrial purpose. In the remand Report called for by the CIT(A), AO has stated undersigned visited the land in Ankanahalli village, bilikere hobli, Hunsur taluk. The land continues to be a mango orchard & there is no sign of any development activity. ITAT has held that the land in question is situated beyond the prescribed limits of Mysore City - Thus, the Remand Report by the Assessing Officer clearly shows that the land continued to be a 'Mango Orchard' and there was no sign of any development. Agricultural land is excluded from the definition of Capital Asset u/s 2(14)(iii) and land situated beyond 8 kms. is exempted from the definition of Capital Asset. Thus, there is a finding of fact by the ITAT that the land is situated beyond the prescribed limit. This Court, after considering the law on the point in various authorities, has held in M.R.Anandaram(HUF) supra that the actual condition and the intended view is a sina qua non while deciding whether a land in question is an agricultural land or not. In view of the Remand Report and the finding of fact recorded by the ITAT, the first question of law merits consideration and it is answered in favour of the assessee and against the Revenue.
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