when it is held that No capital gain arose on sale of land as it wasn't treated as capital asset for other co-owners of such land

No capital gain arose on sale of land as it wasn't treated as capital asset for other co-owners of such land

IN THE ITAT JAIPUR BENCH

Sita Ram Sharma

v.

Income-tax Officer, Ward- 7 (2), Jaipur

R.P. TOLANI, JUDICIAL MEMBER
AND T.R. MEENA, ACCOUNTANT MEMBER

IT APPEAL NOS.722 TO 726 (JP.) OF 2013, 64 TO 68 (JP.) OF 2014
[ASSESSMENT YEAR 2007-08]

MAY  1, 2015 

Section 2(14) of the Income-tax Act, 1961 - Capital gains - Capital asset (Agricultural land) - Assessment year 2007-08 - During relevant year, assessee alongwith his five brothers sold a piece of land - Assessee claimed that said land was situated beyond 8 Km. from local municipal limit and thus it was not a capital asset - Assessing Officer having rejected assessee's explanation, treated land in question as capital asset within meaning of section 2(14) - He thus made addition to assessee's income on account of long term capital gain arising from sale of land - Commissioner (Appeals) confirmed assessment order - It was noted that in case of assessee's brother, revenue authorities had not made any addition on account of long term capital gain - Further, in case of one 'K', adjacent land sold by her had not been regarded as capital asset as envisaged under section 2(14) - Whether in aforesaid circumstances, land sold by assessee was to be treated as agricultural land situated beyond 8 Kms. from local municipal limits and, consequently, impugned addition was to be deleted - Held, yes [Para 9] [In favour of assessee]