TaxTMI 
TaxTMI 
2025 (12) TMI 579
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....has raised the following grounds of appeal: "1) In the facts and on the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs.4,89,83,438/- made by the AO without appreciating the fact that the AO has thoroughly verified the provisions of section 2(14) (iii) of the Act. 2) In the facts and on the circumstances of the case and in law, the Ld. CIT(A) has erred in accepting the evidences submitted by assessee during appellate proceedings without giving opportunity to AO. 3) In the facts and on the circumstances of the case and in law, the Ld. CIT(A) has erred in considering the land as agricultural land relying upon Gandhinagar Municipal Corporation's letter dated 08.02.2016 wi....
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....was "agricultural land" which was excluded from the definition of a capital asset under Section 2(14)(iii) of the Act. The assessee submitted that Adalaj is not governed by a municipality or municipal corporation, thereby excluding the land from clause (a) of Section 2(14)(iii) of the Act, and hence was not subject to capital gains tax. With respect to clause (b) of Section 2(14)(iii) of the Act, the assessee relied on Notification No. 9447 dated 06.01.1994 issued by the Central Government, which specifies that only areas within a 4 km radius from the municipal limits of Gandhinagar fall under the ambit of an urban area for tax purposes. The assessee further supported his claim by placing on reliance a coordinate decision of the Ahmedabad I....
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....d the addition of Rs.4,89,83,438/- made by the Assessing Officer was deleted. 5. The Department assessee is in appeal before us against the order passed by CIT(Appeals) allowing the appeal of the assessee. Before us, the Counsel for the assessee submitted that the case of the assessee is directly covered in its favour by decision of Ahmedabad ITAT in the case of co-owner of the same property which was sold, in which it was held by ITAT that the land in question was an "agricultural land" and hence did not attract capital gains tax. The Counsel for the assessee submitted that this decision passed by Ahmedabad ITAT was brought to the attention of CIT(Appeals) and after taking the same into consideration, he allowed the appeal of the assess....
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....poration vide letter No. GUDA/Tech/692/2015 letter dated 08.02.2016. 8. We have also gone through the Notification No. 9447 dated 06.01.1994 issued by the Govt. of Gujarat wherein it is mentioned that Adalaj (CT) (Guj, population: 9776, Class-V) and municipal limit is area up to a distance of 4 KM from the Municipal limits in all direction whereas land in question is outside the 5 KM radious of Gandhinagar Municipal Corporation and as per Section 2(14)(iii)(a) capital asset means property of any kind hold by an assessee, whether or not connected with his business or profession and agricultural land in Indian, not being land situate (a) in any area which comprised within the jurisdiction of a municipality (whether known as municipal....