https://www.taxtmi.com/caselaws?id=66796 Agricultural land situated in a Gram Panchayat area does not become a capital asset merely because the local population exceeds 10,000. Section 2(14)(iii)(a) applies only to agricultural land within a municipality, municipal corporation or cantonment board having the prescribed population, and the population test qualifies that municipal area rather than creating a separate urban category. A Gram Panchayat is legally distinct from a municipality, and ejusdem generis does not support equating the two. On this reasoning, such land falls outside the capital asset definition and capital gains tax is not leviable on its transfer. en-us Sat, 29 May 1993 00:00:00 +0530 Mon, 07 Mar 2011 14:22:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66796 Agricultural land situated in a Gram Panchayat area does not become a capital asset merely because the local population exceeds 10,000. Section 2(14)(iii)(a) applies only to agricultural land within a municipality, municipal corporation or cantonment board having the prescribed population, and the population test qualifies that municipal area rather than creating a separate urban category. A Gram Panchayat is legally distinct from a municipality, and ejusdem generis does not support equating the two. On this reasoning, such land falls outside the capital asset definition and capital gains tax is not leviable on its transfer. Case-Laws Income Tax Sat, 29 May 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66796