Groundnuts Save the Day – Sale of Land Beyond 8 km from Municipality Held Agricultural- ITAT Chennai

Anita Vs ITO (ITAT Chennai) Assessee, an individual, filed return declaring total income of ₹7.49 lakh and agricultural income of ₹34,200. During scrutiny, AO noticed that Assessee, along with two family members, had sold 2.74 acres of land at Padarvadi Village, Sriperumbudur Taluk, for ₹5.97 crore (assessee’s 1/3rd share: ₹1.78 crore). Assessee claimed the land was agricultural, exempt u/s 2(14)(iii), & filed Adangal & VAO certificates in support. However, AO treated it as urban land, holding that (a) it was classified as “residential” by Registration Dept. since 2007, (...