No capital gain on land specified as agricultural land in revenue records

K.P. Manjunatha Reddy Vs ITO (ITAT Bangalore) Facts- A.O. made addition of Rs.2.06 crores as LTCG arising from sale of land. The assessee claimed that the said land is situated beyond 10 kms. Away from the nearest Municipal limit and therefore, it is not a capital asset as per section 2(14) of the Income-tax Act,1961. However, the A.O. held that the land was converted for non­agricultural purposes before execution of sale deed, therefore, it is a capital asset u/s 2(14) of the Act and it cannot be exempted u/s 10(1) of the Act. Accordingly, the same was brought into taxation as capital gain. ...