The tribunal held that the population of local municipality, and not village panchayat, is to be considered for S. 2(14)(iii). Accordingly, the assessee’s land was covered by S. 2(14)(iii)(b) and not by S. 2(14)(iii)(a), hence the AO has rightly charged land to capital gain tax.(AY. 2014 -15)
Precot Ltd. v ACIT (2023) 201 ITD 350/ 103 ITR 82 (SN) / 226 TTJ 481 (Chennnai)( Trib)
S. 2(14)(iii): Capital asset – agricultural land – land situated within the jurisdiction of municipality limit – Chargeable to capital gain tax. [ S. 2(14)(iii)(a), 2(14)(iii)(b), 45 ]