TMI Blog2012 (11) TMI 1131X X X X Extracts X X X X X X X X Extracts X X X X ..... re-survey No.696/3 at Kakkanad village for development of housing project. In fact, the housing project was commenced on 21-04-2006. According to the ld.representative, the land sold by the taxpayer falls within the jurisdiction of Greater Cochin Development Authority and metropolitan area of Kochi. Therefore, according to the ld.representative, the subject matter of the land cannot be considered to be an agricultural land. According to the ld.representative, since the land falls within the metropolitan area of Kochi it has to be treated as capital asset. Therefore, the gain arising on sale of land has to be taxed under the capital gain tax. 4. On the contrary, Shri S.R. Lokanathan, the ld.representative for the taxpayer submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any municipality or cantonment board referred to in item (a), a the Central Government may, having regard to the extent of, and scope for, urbanization of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette. In view of this definition it is obvious that in any area which is comprised within the jurisdiction of a municipality which has a population of not less than ten thousand would be treated as capital asset even though the land is used for agriculture. The Central Government is also empowered to issue notification extending the area after taking into consideration the extent and scope for urbanisation. In fact, the Central Government issued notification on 06-01-1994 which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. He also observed that Cochin Economic Zone has also been established in Kakkanad and it is nearer to NH 47. But he failed to consider whether land sold by the taxpayer falls within the 8 kms limits from the Cochin Municipality. Unless and until it falls within 8 kms limits of Cochin Municipality as notified by Government of India, it cannot be considered as capital asset . The Commissioner of Incometax( A) has also proceeded on the ground that the land in question is actively used for agricultural purpose. Both the authorities below have failed to consider whether the land in question falls within 8 kms limits of Cochin Municipality. Therefore, this Tribunal is of the opinion that the matter needs to be reconsidered in the light of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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