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2013 (11) TMI 171 - ITAT HYDERABADComputation of capital gains - Deduction of cost of improvement of land to compute capital gains not allowed on evidence – Held that:- For carrying out the development works of removing the rocks, boulders etc., heavy machinery, such as JCBs, Dozers etc., are required. However none of the parties mentioned as the developers of land were filing their returns of income and therefore were indeed not into the activity of carrying out such development works - Said parties did not even have any machinery or technology to carry out such works proving that the story of entering into development agreement was only a make believed arrangement - Assessee and his son failed to discharge the onus of proving that development work had been executed by them and even the technical ability to carry out such works could not be proved. Hence, deduction on this count not allowed – Decided against the assessee. Sale of land being agricultural does not constitute a transfer of capital asset for being taxed in the head capital gain when the land is not a capital asset either within the meaning of section 2(14)(iii)(a) or 2(14)(iii)(b) – Held that:- The land in question giving rise to capital gain was, in fact, urban land though agricultural operations have been carried out on them - The land is situated at Narsing Village of Rajendra Nagar Mandal, R.R. District which is within the municipal limits of Rajendra Nagar - This is urban land akin to the Hyderabad Municipality situated within 8 KM from the local limits of Hyderabad Municipal Corporation - Mere fact that the land in question was agricultural land cannot be a ground to claim for exemption under section 2(14) of the Act as the land is situated within the local limits of Hyderabad Municipal Corporation - Land in question is capital asset liable for income-tax – Following the decision of coordinate bench in the case of Smt. Gousia Begum and Others [2013 (9) TMI 559 - ITAT HYDERABAD]., held that the land in dispute cannot be considered as agricultural land so as to hold that it is exempt from capital gains – Decided against the Assessee.
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