2017 (12) TMI 741

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....arg, Judicial Member: The present appeal has been preferred by the assessee against the order of the Commissioner of Income Tax (Appeals), [hereinafter referred to as CIT(A)] Patiala dated 20.3.2017. 2. The assessee in this appeal has taken the following ground:- The Ld. CIT(A) erred in law in confirming the action of the Assessing officer in treating the agricultural land situated ....

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....d within the 4 KM of the municipal limits of Thanesar city, whereas, as per the Notification, the agricultural land situated beyond 5 KMs were liable to be excluded from the definition of capital assets chargeable to tax, so it was not an agricultural land rather urban land in nature. Accordingly, he charged the sale of land to long term capital gains tax and made an addition of Rs. 77,95,760/- to....

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....uthorities. 7. We have considered the rival contentions. The relevant provisions of section 2(14)(iii)(a) &(b) of the Act, as applicable for the year under consideration, are as under:- "capital asset" means- (a) property of any kind held by an assessee, whether or not connected with his business or profession; (b) ....... but does not include - (iii....

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....on, specify in this behalf by notification in official Gazette." 8. The perusal of the above provisions reveal that the agricultural land situated at such a distance, as the Central Government may prescribe by notification, having regard to the extent and scope of urbanization of that area and other relevant consideration, specify in this behalf. Admittedly, as per notification, the specified d....