https://www.taxtmi.com/caselaws?id=465789 Whether compensation on compulsory acquisition was taxable as LTCG turned on whether the land was a "capital asset" under s 2(14)(iii)(b). The Tribunal held that, per Explanation 2 to CBDT Notification dated 06.01.1994, municipal limits for distance computation must be taken as they existed on 06.01.1994, and since the Amin's report indicated the land lay beyond 2 km from the municipal border (as against the lower authority's measurement method), the AO was directed to re-measure the distance accordingly; if beyond 2 km and land particulars tally, compensation is treated as agricultural income, failing which it is taxable as LTCG. Appeal partly allowed for statistical purposes. en-us Mon, 27 Jan 2025 00:00:00 +0530 Thu, 08 Jan 2026 21:13:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465789 Whether compensation on compulsory acquisition was taxable as LTCG turned on whether the land was a "capital asset" under s 2(14)(iii)(b). The Tribunal held that, per Explanation 2 to CBDT Notification dated 06.01.1994, municipal limits for distance computation must be taken as they existed on 06.01.1994, and since the Amin's report indicated the land lay beyond 2 km from the municipal border (as against the lower authority's measurement method), the AO was directed to re-measure the distance accordingly; if beyond 2 km and land particulars tally, compensation is treated as agricultural income, failing which it is taxable as LTCG. Appeal partly allowed for statistical purposes. Case-Laws Income Tax Mon, 27 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465789