Amendment for computing 'aerial-distance' prospective, income from land sale held
agricultural income
Date : June 15 2015
Conclusion:
HC upholds exemption on income from sale of agriculture land for AY 2009-10, as land situated
beyond 8 kms from municipality not capital asset u/s 2(14); Rejects Revenue’s stand that
amendment to Sec 11 of the General Clauses Act w.e.f. April, 2014 indicates the legislative
intention of computing distance aerially i.e. as per the “crows flight or straight line” method and
not by road distance; Holds amendment in definition of 'Capital Asset’ to be prospective, effective
from AY 2014-15; The General Clauses Act was amended emphatically pointing out aerial
distance as the relevant norm & to clear confusion, hence treats amendment only prospective
giving benefit to assessee; Relies on Mumbai ITAT ruling in Laukik Developers to hold that
distance of the agricultural land, has to be measured in terms of the approach by road and not by
the straight line distance on horizontal plane or as per crow's flight
agricultural income
Date : June 15 2015
Conclusion:
HC upholds exemption on income from sale of agriculture land for AY 2009-10, as land situated
beyond 8 kms from municipality not capital asset u/s 2(14); Rejects Revenue’s stand that
amendment to Sec 11 of the General Clauses Act w.e.f. April, 2014 indicates the legislative
intention of computing distance aerially i.e. as per the “crows flight or straight line” method and
not by road distance; Holds amendment in definition of 'Capital Asset’ to be prospective, effective
from AY 2014-15; The General Clauses Act was amended emphatically pointing out aerial
distance as the relevant norm & to clear confusion, hence treats amendment only prospective
giving benefit to assessee; Relies on Mumbai ITAT ruling in Laukik Developers to hold that
distance of the agricultural land, has to be measured in terms of the approach by road and not by
the straight line distance on horizontal plane or as per crow's flight
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