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Issues:
1. Determination of whether the land in question is a capital asset within the meaning of section 2(4A) of the Indian Income-tax Act, 1922. 2. Classification of the land as agricultural or non-agricultural for tax purposes. Analysis: The judgment pertains to a reference under sub-section (2) of section 256 of the Income-tax Act regarding the classification of land as a capital asset and the tax implications of capital gains. The assessee, Tarun Chandra Barua, owned 175 bighas of land, with the focus on 25 bighas acquired under the Land Acquisition Act. The market value of the acquired land was determined at Rs. 5,000 per bigha for 5 bighas and Rs. 7,000 per bigha for 20 bighas, totaling Rs. 1,65,000. The crucial issue revolved around whether the land was agricultural or non-agricultural. Initially, the assessee declared the land as non-agricultural, leading to the addition of Rs. 1,00,000 towards capital gains. However, upon appeal, the Appellate Assistant Commissioner considered various factors, including the appellant's lack of personal knowledge due to family circumstances, and concluded that the land was agricultural. This decision was supported by village records and personal inspection. The Tribunal upheld this view, emphasizing that the land could not have been under cultivation when acquired by the Government, given the subsequent road construction. The High Court, in line with precedents, affirmed the Tribunal's factual findings, highlighting its limited scope in disturbing such findings. Citing relevant case law, the court held that the land in question qualified as a capital asset under section 2(4A) of the Act, ruling in favor of the Revenue and against the assessee. The judgment underscored the importance of factual determinations based on evidence such as village records and inspections in resolving tax disputes related to land classification and capital gains.
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