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Documents citing The Ito, Ward-1(1)(1),, Ahmedabad vs Aakash Deep Farms Pvt. Ltd.,, Ahmedabad on 10 December, 2018

The Jcit, Circle-2(1)(2),, Ahmedabad vs Rajeshkumar Shantilal Sanghvi,, ... on 27 August, 2024

8. At the time of appellate proceedings, the assessee relied on the judgment of the Hon'ble Madras High Court in Sri M.S. Srinivas Naicker (292 ITR 481) (2007), where it was held that the character of the land at the time of sale is crucial, and if the land was agricultural, it does not become a capital asset merely because it was sold to a non-agriculturist or someone who intended to use it for non-agricultural purposes. The assessee also referred to the ITAT Ahmedabad decision in ITO vs. Akash Deep ITA No.1139/Ahd/2019 Assessment Year: 2012-13 Page 4 of 5 Farms P. Ltd. (ITA No. 2138/Ahd/2012), which supported the argument that the distance of the land from municipal limits should be measured from the boundaries as they existed at the time of the 1994 notification by the Central Government, not from any later extensions. The CIT(A) examined the facts and noted that the land was indeed agricultural and was situated beyond the 8-kilometer limit from any municipal corporation, specifically Ahmedabad Municipal Corporation (AMC) and Gandhinagar Municipal Corporation (GMC). The CIT(A) agreed with the assessee's argument, concluding that the land did not qualify as a capital asset under Section 2(14)(iii), and therefore, the sale proceeds could not be taxed as capital gains under Section 45 of the Act. The CIT(A) also cited the ITAT decision in Akash Deep Farms P. Ltd., which clarified that the measurement of distance should be as per the boundaries existing at the time of the Central Government notification in 1994 and since the land in question was far beyond the prescribed limit, it remained a rural agricultural land, exempt from capital gains tax.
Income Tax Appellate Tribunal - Ahmedabad Cites 11 - Cited by 0 - Full Document
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