Assessing Officer accepted the land sold is agricultural land hence not  liable to tax  . PCIT passed the revision order  on ground that Assessing Officer had failed to examine genuineness of such transaction of transfer of land by assessee in course of assessment which rendered said assessment order erroneous and prejudicial to interest of assessee . On appeal the Tribunal held that land sold by assessee was situated beyond 8 kms from local limits of any municipality or cantonment board as referred in proviso to section 2(1A) and section 2(14) and, thus, certainly it would not fall within definition of capital asset and, accordingly, question of any capital gain would not arise on sale of said agricultural land  . During original assessment, Assessing Officer had raised various queries with regard to claim of capital gain on transfer of land by assessee who had furnished details in respect to distance of agricultural land from municipal limits, record of population as per last census and only after considering said material on record, Assessing Officer had accepted claim of assessee . Since  the Assessing Officer had passed assessment order after making necessary inquiries order is not prejudicial to the interest of revenue . ( AY. 2011

-12 )