1994 Notification Prevails: Land Beyond 5 Km Is Agricultural- No Capital Gains

Mahabir Vs ITO (ITAT Delhi) Assessee sold land in Village Dhunela, Sohna, Gurgaon. AO reopened the case and taxed the gain, holding that the land was within 1.5 km of Gurgaon municipality and therefore not agricultural land. Assessee argued that the AO applied the wrong municipality. As per CBDT Notification dated 06.01.1994, only land within 5 km of Sohna municipality is taxable. Assessee produced a Tehsildar, Sohna certificate showing that as on 06.01.1994, the land was 6 km away—i.e. outside taxable limit. Tribunal held that 1994 Notification still applies, and municipal expansion after 1...