TMI Blog2013 (10) TMI 1035X X X X Extracts X X X X X X X X Extracts X X X X ..... as 'capital asset' or not for the purpose of taxing capital gain. If the land is adjacent to a municipality and is urban land covered under section 2(14), even if municipality and the land fall in different States, the land will conti- nue to be urban land. If such land is excluded from the definition of 'capital asset', the purpose of statutory scheme will not be achieved – In the present case, land is situated within the municipal limits of Municipal Council, Sujanpur – Therefore, the asset is ‘Capital Asset’ – Liable to be taxed as capital gains - Decided in favor of Revenue. - ITA No. 209 of 2012, ITA No. 190 of 2012 and ITA No. 208 of 2012 - - - Dated:- 29-4-2013 - MR. HEMANT GUPTA AND MS. RITU BAHRI, JJ. For the Appellant: Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant is situated at village Islampur, District Pathankot and the same was sold on August 29, 2005. The assessee claimed that since the land is an agricultural land, therefore, it does not attract any capital gains. Before the Assessing Officer, a certificate issued by the tehsildar, Pathankot, was filed to the effect that the land is at a distance of 9 kms from Pathankot and thus not a capital asset. The Assessing Officer took note of the fact that the Government of Punjab, vide notification dated November 31, 2004, extended the municipal limits of the Municipal Council, Sujanpur, up to Malikpur and that the said Municipal Council has established the octroi post at Malikpur and the land sold was situated inside the octroi post. Thu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the land in question is within the specified distance from Panchkula municipality which falls in the State of Haryana while land is in the State of Punjab. Thus, land is urban land for the purpose of definition of 'capital asset' under section 2(14). The concept of municipality as a unit of State or the fact that a State has no juris- diction to make law beyond its territory have no relevance for the purpose of determining whether particular land was 'capital asset' or not for the purpose of taxing capital gain. If the land is adjacent to a municipality and is urban land covered under section 2(14), even if municipality and the land fall in different States, the land will conti- nue to be urban land. If such land is excluded from the defin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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