Dispute over measuring distance for land use settled by ITAT in favor of agricultural classification.

The ITAT upheld the CIT(A)'s decision regarding the measurement of distance for agricultural land, dismissing the Revenue's appeal. The dispute centered on whether to measure distance based on aerial distance or the approach road for determining if the land qualifies as agricultural or a capital asset. The ITAT set aside the AO's order and directed the distance to be determined from municipal limits following previous Tribunal orders, in line with the Punjab & Haryana High Court's ruling.

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Issues involved: Dispute regarding measurement of distance for agricultural land u/s 2(14)(iii)(b) of the Income-tax Act.

Details of the judgment:
- The dispute in the appeal was about the measurement of distance for determining if the land is agricultural or a capital asset.
- The Assessing Officer considered the Arial distance, while the assessee argued for measuring distance through the approach road.
- The CIT(A) referred to a decision of the Punjab & Haryana High Court and directed the AO to consider the case accordingly.
- The ITAT considered various case laws and upheld the CIT(A)'s decision based on the Punjab & Haryana High Court's ruling.
- The ITAT set aside the AO's order and directed to determine the distance from municipal limits by adopting the method as per previous Tribunal orders.
- The ITAT confirmed the CIT(A)'s order and dismissed the Revenue's appeal based on the co-ordinate Bench's decision and the Punjab & Haryana High Court's ruling.

Conclusion: The ITAT upheld the CIT(A)'s decision regarding the measurement of distance for agricultural land, dismissing the Revenue's appeal.

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