https://www.taxtmi.com/caselaws?id=297519 Agricultural land does not become a capital asset merely because it falls within a special development authority area. The operative test under section 2(14)(iii) is whether the land is situate within a municipality or within the prescribed distance from municipal limits. On the stated facts, the land was within HADA but HADA was not a municipality, the village continued to be treated as gram panchayat land, and the land was stated to be more than 21 kms from the GHMC limits. The authority therefore treated the land as agricultural land outside the capital asset definition, so capital gains treatment was not attracted. en-us Wed, 29 Jun 2016 00:00:00 +0530 Wed, 08 Sep 2021 20:41:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=297519 Agricultural land does not become a capital asset merely because it falls within a special development authority area. The operative test under section 2(14)(iii) is whether the land is situate within a municipality or within the prescribed distance from municipal limits. On the stated facts, the land was within HADA but HADA was not a municipality, the village continued to be treated as gram panchayat land, and the land was stated to be more than 21 kms from the GHMC limits. The authority therefore treated the land as agricultural land outside the capital asset definition, so capital gains treatment was not attracted. Case-Laws Income Tax Wed, 29 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=297519