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Issues involved: The judgment involves the levy of short term capital gain on the sale of agricultural land.
Levy of Short Term Capital Gain on Sale of Agricultural Land: - The appeals by the Revenue arose from separate orders of the Commissioner of Income-tax (Appeals)-III, New Delhi, concerning two different assessees. - The common issue in all appeals was the levy of short term capital gains on the sale of agricultural land, with the facts being identical except for figures. - The assessees claimed exemption from capital gains tax as the lands sold were situated more than 8 kilometers from the outer limits of Gurgaon. - The Assessing Officer (AO) treated the lands as capital assets and taxed the profits as short-term capital gains, suspecting the possibility of a shorter route. - Before the CIT(A), it was argued that the lands were agricultural and situated beyond 8 kilometers from Gurgaon's municipal limits, supported by certificates from the Tehsildar and District Town Planner. - The CIT(A) held that since the lands were more than 8 kilometers away from Gurgaon's outer municipal limit, they were not capital assets, thus exempt from tax. - The Revenue contended that the nature of the lands should have been examined, citing a decision from ITAT Cochin Bench and the presence of a Container Depot nearby. - The assessees maintained that the lands were agricultural, more than 8 kilometers from Gurgaon's municipal limits, and the AO's suspicions were unfounded. - The Tribunal found no evidence to support the AO's claim that the lands were within 8 kilometers of Gurgaon's municipal limits, and since the nature of the lands was not in dispute, upheld the CIT(A)'s decision to grant relief to the assessees. - Consequently, the appeals filed by the Revenue for both assessment years were dismissed.
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