The judgment of the court below is reversed, and the case is remanded to Daejeon High Court.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. Article 68(2) of the former Restriction of Special Taxation Act (amended by Act No. 921, Jan. 1, 2010; hereinafter the same) (hereinafter “instant provision”) provides that any income accruing from an investment in kind by a farmer prescribed by the Presidential Decree in an agricultural corporation in the form of farmland or grassland pursuant to the Grassland on or before December 31, 2009 shall be exempted from capital gains tax.

Meanwhile, Article 2 subparagraph 1 of the former Grassland Act (amended by Act No. 11690, Mar. 23, 2013; hereinafter the same) provides that "a person who intends to develop grassland shall file an application for permission for the development of grassland with the head of a Si/Gun having jurisdiction over the location of the relevant land as prescribed by Presidential Decree," while Article 2 (2) of the same Act provides that "the head of a Si/Gun may attach conditions prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries, such as the period of the development of grassland when he/she grants permission for the development of grassland pursuant to paragraph (1)."

2. According to the reasoning of the judgment below, in full view of the adopted evidence, the lower court: (a) rendered the instant disposition imposing capital gains tax on the Plaintiffs on the ground that each of the instant land was not subject to capital gains tax exemption under the Grassland Act, on November 19, 2009, on the ground that: (b) the Plaintiffs did not fall under the category of land subject to capital gains tax exemption under the instant provision; and (c) each of the instant dispositions on the ground that each of the instant land was not subject to capital gains tax exemption under the instant provision.