TMI Blog2016 (5) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... the decisions which the Commissioner of Income Tax (Appeals) has distinguished in his order. Therefore, we find that Commissioner of Income Tax (Appeals) has examined the issue and also explanations of the assessee were dealt. Therefore, we are not inclined to interfere with the order of the Commissioner of Income Tax (Appeals) and uphold the same. - Decided against assessee. - I.T.A. No. 1163/Mds/2015 - - - Dated:- 24-3-2016 - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER For The Appellant : Shri. Pratapkaran Paul, C.A. For The Respondent : Shri. A.B. Koli, IRS, JCIT. ORDER PER G. PAVAN KUMAR, JUDICIAL MEMBER: The appeal filed by the assessee is directed against order of the Commissioner of Income-tax (Appeals)-15, Chennai in ITA No.203/CIT(A)-15/13-14, dt 16.03.2015 for the assessment year 2006- 2007 passed u/s.271(1)(c) and 250 of the Income Tax Act, 1961 (herein after referred to as the Act ). 2. The assessee has raised the following grounds :- 1. The order of the Assistant Commissioner of Income Tax, Company Circle VI(3) is erroneous, arbitrary and against the settled principles of law. 2. The Assistant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 92,111/- and claimed exempted. The agricultural land located in S No.33, Navalur Village, Chengalpet Taluk was leased by assessee out to Shri. Sadasivam for cultivation and called for the lease agreement and confirmation of agricultural operation on land by cultivator. But the assessee could not substantiate inquiry with any documentary evidence except letter on 12.12.2008 explaining that ;17,500/- was received from cultivator for use of agricultural land during the financial year 2005-06. The Assessing Officer based on the assessees submissions called an enquiry and Inspector of the Income Tax Department made enquiry with Department of Town Planning Authority to verify the nature of property. The report obtained bythe Department is as under:- The Engineer verified the survey numbers in the town planning master Book, and said that the lands come under urbanization lands and all activities can be made in these lands except pollution related activities. There is no need of conversation certificate from agricultural land to non agricultural land, for these zones . Considering the report and nature of land, the Assessing Officer treated the land as urbanized land and sale p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .06.2009. Aggrieved by the penalty order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals). 4. In the appellate proceedings, the ld. Authorised Representative argued that order of the Assessing Officer is erroneous and assessee has not conceled any particulars as the character of the land changed due to specific conversation by the buyer after completion of legal formalities and re-characterization is subsequent to sale and the land was sold as agricultural land. The Government order issued by the Central Government in Notification No.SO 10(E) dated 06.10.1994 and amended Notification No.SO1302 dated 28.12.1999 land is situated outside the specified limits of the notified distance of 8 kms from Chennai and 5 kms from Chengalpattu Municipality limit. The Assessing Officer relied on the report of Development of Town Planning Authority instead of Central Government notification. The assessee company has not preferred an appeal against the order u/s.143(3) of the Act and paid taxes though income was disclosed under agricultural income. The ld. Authorised Representative relied on decision of Co-ordinate Bench and the catena of judgments of High Court and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... buyer after completion of legal formalities at the time of sale. As per the Central Government notification, the land is situated outside the specified limits of notified distance of 8kms from Chennai limit and 5kms from Chengalpattu municipality. The Assessing Officer is bound to accept the Government notification instead relied on the Report of Department of Town Planning Authority. The property was sold to builder but subsequent conversation by the builder is outside purview of taxation. The assessee company has accepted the addition and paid the taxes to buy peace with the department and avoid protracted litigations and also not filed Appeal against order u/s.143(3) of the Act. The ld. Counsel drew attention to the paper book containing relevant portion of Central Government notification at page no.18 disclosing the survey no. and guideline value. The main clarification as per the SRO, that Village Navalur is a agricultural place and produced copies of Patta and Chitta in regional language at page 13 of paper book and certificate from Village Administrative Office certifying the population of Navalur village is below ten thousand. The ld. Authorised Representative also relied ..... X X X X Extracts X X X X X X X X Extracts X X X X
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