No addition of capital gain on land as lack of agricultural Income did not alter agricultural character of land

Advertisement Sohanlal Sewaram Jaggi (HUF) Vs ITO (ITAT Mumbai) Conclusion: Addition of capital gain was deleted as impugned land being agricultural land situated beyond the prescribed municipal limits and having retained its agricultural character, was outside the ambit of “capital asset” under section 2(14)(iii) and therefore no capital gains could have been charged on transfer thereof. Held: Assessee sold certain land situated approximately 17–18 kilometers away from the municipal limits of Pune. AO treated the land as a “capital asset” under section 2(14)(iii) and brou...