Capital asset

[Vijay Maheshwari]

Whether Land situated in Nagar Panchayat Area of which population is less than 10000 would be capital asset. Please note that name of this Nagar Panchayat is not given in Notification No.9447 dated 06.01.1994 issued under Section 2(14)(iii)(b). It is also away for more than 8 kms. from the nearest Municipal Corporation given in the aforesaid notification.

Regards CA Vijay Maheshwari

Please give

AI Summary

Capital asset status: land classification depends on notification, legal character, and agricultural-use exclusion.
Qualification of land in a small Nagar Panchayat as a capital asset depends on its legal character and applicable statutory definition rather than mere omission from a municipal notification; practitioner views vary between treating land generally as a capital asset and excluding land that is agricultural in nature from capital asset classification.