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2007 (7) TMI 339 - ITAT DELHI-BCapital asset u/s 2(14)(iii)(b) - Sale Of Land - Agricultural Or Non-Agricultural - Not cultivated the land for a period of fourteen years - land falling beyond 8 kms from Committee Area - HELD THAT:- Merely because the assessee has not cultivated the land for a period of fourteen years i.e., from the date of purchase till the date of its sale, however, ignoring the explanation given by the assessee why he could not cultivate the land for a period of fourteen years and also ignoring the other evidence placed on record by the assessee clearly indicating that from the date of purchase till the date of its sale the land remained an agricultural land in the Revenue records and the assessee did not convert the user of the land as nonagricultural either temporarily or permanently. We are of the opinion that the CIT(A) was not justified in rejecting the contention of the assessee merely because the land of the assessee was not mentioned in the certificate issued by the Tehsildar because, undisputedly, the land in question was situated in village Roz-Ka-Gurjar, which has been certified by the Tehsildar to be situated beyond a distance of 8 kms from the Town Committee Area. Hence, on the basis of the certificate issued by the Tehsildar, we hold that in view of the CBDT circular the land of the assessee fell outside the purview of capital asset. Thus, we conclude that in the existing facts and circumstances the tax authorities below were not justified in treating the land in question as non-agricultural land and computing the capital gains on the sale thereof. Accordingly. the orders of tax authorities below in this regard are set aside and the issue involved in the grounds of appeal is decided in favour of the assessee. The grounds of appeal taken by the assessee are allowed. In the result the appeal filed by the assessee is allowed.
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