The ITAT allowed the assessee's appeal regarding capital gains ...

Land Outside Municipal Limits Not a Capital Asset Under Section 2(14), Exempting Seller from Capital Gains Tax

April 4, 2025

Case Laws Income Tax AT

The ITAT allowed the assessee's appeal regarding capital gains tax on land sale, setting aside both the AO's and CIT(A)'s orders. The dispute centered on whether the land qualified as a "capital asset" under s. 2(14), specifically whether it was situated within municipal limits of Sardarsahar. The Tribunal found that revenue authorities failed to properly consider the Rajasthan State Gazette dated 14.07.1988, which established boundary limits under the Rajasthan Nagar Palika Act, 1959. A subsequent letter dated 04.04.2019 clarified that the land was outside municipal limits, contradicting the earlier letter relied upon by the AO. The ITAT held that the tax authorities failed to discharge their evidentiary burden on this crucial jurisdictional fact.

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The ITAT allowed the assessee's appeal regarding capital gains ...

Land Outside Municipal Limits Not a Capital Asset Under Section 2(14), Exempting Seller from Capital Gains Tax

April 4, 2025

Case Laws Income Tax AT

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