Assessee sold agricultural land at Mohali in 2014 and claimed deduction u\/s. 54B of the Act by buying another agricultural land. AO\u00a0 considered agricultural land sold as a capital asset by rejecting contention of the assessee that land sold was outside the limits of the municipality and hence, it was exempt income. CIT(A) confirmed addition made by the AO.\u00a0 On appeal the Tribunal deleted the addition by accepting the evidence adduced by the assessee showing the population of the village was mere 907 persons as per published census and that land was situated outside the limits of the municipality.\u00a0 The long term capital gains on sale of land cannot be brought to tax.\u00a0 (AY.2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 2(14)(iii) : Capital asset-Agricultural land-Capital gains-Land not situated within jurisdiction of Municipality-Population of village was 907 persons as per latest published census of 2011-Long term capital gains on sale of land cannot be taxed as capital gains. [S. 2(14)(iii)(a), 45, 54F] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-50211","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-d3R","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=50211"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50211\/revisions"}],"predecessor-version":[{"id":50212,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50211\/revisions\/50212"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}