Shortest Road Distance Measurement to Ascertain Agricultural Land Sale: ITAT Drops Addition by ₹50 Lakhs

The ITAT deleted an addition of ₹50 lakh related to the sale of agricultural land after determining that the land was located beyond the specified municipal limits when measured by the shortest road distance. The tribunal clarified that for exemption under Section 2(14)(iii), the shortest road route must be considered, not aerial distance. This interpretation aligns with precedents ensuring equitable tax treatment for rural landowners. The decision protects genuine agricultural transactions from erroneous capital gains taxation, promoting clarity in the application of geographical distance criteria under the Income Tax Act.