Sec. 2 & 45 of Income Tax Act, 1961 - Capital gain - For land to be excluded from capital asset, it has to be agricultural land in India; such land to be not agricultural must fulfill two conditions viz. it must be land situated in any area which is comprised within the jurisdiction of a municipality or cantonment board and which has a population of not less than 10,000. These two conditions are pre-conditions and must be read conjunctively. Tribunal had considered the census report as well as the population certificate of the village dated 02.06.2008 and other relevant documents and thereafter returned a finding of fact that at the time of sale, the land in question was situated at village Juchandra, the population of which was 5,912 which is less than the statutory requirement of 10,000. Thus, this condition being absent the sold land was rightly treated as agricultural land, not included within the ambit and meaning of capital asset. Appeal of the Revenue against the order of Tribunal dismissed in holding that the lands which were sold were agricultural lands, not forming part of capital asset within the meaning of Section 2(14) of the Act. - PR. CIT V/s ANTHONY JOHN PEREIRA - [2020] 425 ITR 134 (BOM)