2011 (6) TMI 775 - AT - Income Tax

Summary

Issues involved: Dispute regarding measurement of distance for agricultural land u/s 2(14)(iii)(b) of the Income-tax Act.

Details of the judgment:
- The dispute in the appeal was about the measurement of distance for determining if the land is agricultural or a capital asset.
- The Assessing Officer considered the Arial distance, while the assessee argued for measuring distance through the approach road.
- The CIT(A) referred to a decision of the Punjab & Haryana High Court and directed the AO to consider the case accordingly.
- The ITAT considered various case laws and upheld the CIT(A)'s decision based on the Punjab & Haryana High Court's ruling.
- The ITAT set aside the AO's order and directed to determine the distance from municipal limits by adopting the method as per previous Tribunal orders.
- The ITAT confirmed the CIT(A)'s order and dismissed the Revenue's appeal based on the co-ordinate Bench's decision and the Punjab & Haryana High Court's ruling.

Conclusion: The ITAT upheld the CIT(A)'s decision regarding the measurement of distance for agricultural land, dismissing the Revenue's appeal.