The ITAT Hyderabad held that the capital asset, as defined in...

The ITAT Hyderabad held that the capital asset, as defined in section 2(14) of the Act, must be held by the assessee and not connected with their business or profession. In this case, the land in question was owned and registered in the name of A. Vindhyavali, not the assessee. Therefore, it was not a capital asset in the hands of the assessee, and no addition could be made for capital gains arising from its sale. The AO's reliance on sale deeds was justified as the AO mentioned them in relation to the agricultural land and the sale cum GPA entered by the assessee. The CIT(A) granted relief based on registered documents, which are admissible in law as "documents in rem." The decision was made in accordance with the Transfer of Property Act and did not violate principles of natural justice or Rule 46A of the IT Rules. The deletion of the addition towards capital gains from the land sale was upheld, ruling in favor of the assessee.