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2022 (7) TMI 220 - ITAT CHENNAILTCG - profit on sale of ancestral agricultural lands in the status of individual instead of assessing it in the status of appellant HUF - only reason for the AO to bring sale consideration received for transfer of impugned land under the head ‘capital gains’ is land has been sold for non-agricultural purpose and further, impugned land is situated within jurisdiction of Chennai City Municipal Corporation HUF - Whether land which was sold by the assessee, nature of land was agricultural land, same cannot be included within definition of capital asset as defined u/s.2(14)? - HELD THAT:- We find that there is no dispute with regard to nature of land, because in the revenue records, the land has been classified as agricultural land. The assessee has also furnished various evidences to prove that his father has carried out agricultural operations for many years. The only dispute with regard to distance in which such land is situated from the limits of Chennai Municipal Corporation and from which date said distance has been extended to the village in which impugned land is situated. The assessee claims that village in which impugned land situated was included in the Chennai City Corporation limits from 19.07.2011 onwards, whereas the Revenue claims that place has been included within Chennai City Corporation limits on 09.11.2010 itself. In case, the G.O referred to by the AO is correct, then nature of land has to be examined with reference to said G.O. and distance of the place to determine nature of the asset. In case G.O. referred to by the assessee is correct, then impugned land in question is definitely as agricultural land which is outside scope of capital asset as defined u/s.2(14) - This fact needs to be verified by the AO in light of two Government orders referred to above. Hence, we set aside the issue to the file of the AO and direct the A.O to decide the issue after considering necessary facts and also by referring to G.Os brought on record by both the parties and also decide the issue in accordance with law. Appeal filed by the assessee is treated as allowed for statistical purposes.
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