1982 (4) TMI 156

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....nded over immediately, but the land was actually transferred through a registration deed on 22nd July, 1974. As per the original agreement, the purchase consideration was agreed at Rs. 2,20,000. But since there was increase in the value of land, between the period from 23rd Jan, 1971 to the date of registration, i.e. 22nd July, 1974, the purchase offered was sold for a sum of Rs. 2,65,000. The excess amount was capital gains. As against this order of the ITO the assessee went in appeal before the AAC, before whom the ld. counsel for the assessee submitted that in terms of s. 2(14)(iii)(b) agricultural land is not a capital asset because the land was situated beyond one kilometre as required vide Notification No. S.O. 77(6), dt. 6th Feb., 19....

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....e of the aforesaid land cannot be charged in view of the decision reported in (1981)22 CTR(Bom)41 in the case of Manubhai & Ors. The ld. D. R. on the other hand contended before us that the decision relied upon by the assessee is distinguishable on the facts and further contended that when a portion of the land owned by the assessee falls within the mischief of subs-s (14) of s. 2 of cl. (iii) of sub-s. (b) read with Notification No. S.O. 77(6),dt. 6th Feb 1973, the entire land should be taken as a capital asset and the sale of such land as a capital asset and the sale of such land is liable to be charged for capital gains. 3. We have carefully considered the submissions made on behalf of both the sides. In the said case, relied on by the ....