Nataraj Ramaiah v.ITO (IT) (2024) 115 ITR 31 (SN)(Chennai) (Trib)

S. 2(14)(iii) : Capital asset-Agricultural land-Sale of agricultural land-Land situated beyond 10 Kms. from Municipal limits-And Shown as wet land-Registration of immovable property by land Registrar-Paid land revenue-Cannot be assessed as capital gains. [S. 45]

Held that  the assessee had paid   the land tax  to the local Revenue office as agricultural land and had furnished the certificate issued by the Village Administrative Officer to prove that the land was situated beyond 10 kms. from the municipal limits as to fall outside the definition of capital asset per section 2(14) of the Act.  The assessee had also furnished before the Dispute Resolution Panel the land details available in the records of the Revenue authorities showing it to be wet land for the purpose of valuation for registration of immovable property by the Land Registrar. Tribunal held that merely because the Tahsildar had left the columns of crops grown or cultivated blank, that could not lead to the conclusion that the immovable property is  a capital asset. Addition as capital gain is deleted. (AY. 2015-16)

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