Land Beyond Municipal Limits Is Not a Capital Asset: Revenue’s Appeal Dismissed

ACIT Vs Krupesh Jayantilal Patel (ITAT Ahmedabad) The Ahmedabad “D” Bench of the Income Tax Appellate Tribunal dismissed the Revenue’s appeal for AY 2013-14, holding that the land sold by the assessee was agricultural land and did not qualify as a “capital asset” under section 2(14) of the Income-tax Act. The Tribunal noted that the issue stood squarely covered by earlier co-ordinate Bench decisions involving the same transaction and joint owners, wherein it was conclusively held that the land was situated beyond 5 km from the municipal limits of Gandhinagar Municipal Corporation, as...