Before 01.04.2014 Agricultural Land Distance to Be Measured by Road: Bombay HC

CIT Vs Nitish Rameshchandra Chordia (Bombay High Court)

Bombay High Court, in CIT vs. Nitish Rameshchandra Chordia, ruled that the distance of agricultural land from municipal limits must be measured by road and not by aerial distance. This ruling directly impacts the classification of agricultural land under Section 2(14) of the Income Tax Act, which determines whether capital gains tax applies. The court upheld the decision of the Income Tax Appellate Tribunal (ITAT), which had favored the assessee by rejecting the revenue’s contention that the land should be measured

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