Krishna Murthy Vallu Vs ITO (ITAT Visakhapatnam)- If land which is sold is situated in an area which is comprised within the jurisdiction of a municipality, etc, then the said land is squarely covered by clause (a) of section 2(14)(iii) and would fall in the category of “Capital assets” even if it is held to be agricultural land. However, the assessee would be entitled for an exemption under section 54B on the reinvestment made by him in the purchase of another agricultural land subject to fulfilment of certain conditions.
The AO is not required to make a reference to the valuation officer if the assessee did not object before the AO for adopting the sales value determined for stamp duty purposes for computing the short-term capital gain as per the provisions of s 50C.
Krishna Murthy Vallu Vs. ITO
ITA No. 530/Vizag/2010
Assessment Year: 2007- 08