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2016 (5) TMI 888 - BOMBAY HIGH COURT

2016 (5) TMI 888 - BOMBAY HIGH COURT - TMI - Urban land - nature of land - whether any error was committed by the learned Tribunal while coming to the conclusion that the subject land is not urban land - Held that:- The relevant Assessment Year in the present case is admittedly much before the coming in force of the said amendment and as such the distance of examining whether such land is urban land or not an aerial distance or crow's flight based on such amendment would not arise. There is no i .....

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e respondent. 2 The above appeal inter-alia seeks to set aside the order dated 04.07.2014 passed by the Income Tax Appellate Tribunal, Panaji. 3. Briefly, the facts of the case are that during the relevant assessment year 2005-06, the assessee/respondent herein had planned to set up a state of the art international education institution with world class affiliation and as such purchased a plot of land called CONO situated at Siridao, Palem, Tiswadi Taluka on 08.03.2004. The .....

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. Being aggrieved by the said assessment order, the appeal was preferred before the CIT (A). The CIT (A) accordingly, came to the conclusion that the land is not liable for wealth tax and the Assessment Officer was accordingly directed to delete the addition made and consequently, the ground in the appeal was allowed. The learned Tribunal while examining the appeal by the Revenue has observed at para 10 thus : 10.......................From this above definition there is an amendment i .....

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8 Taxman 54, wherein it has held as under: " A perusal of the aforesaid provision shows that capital asset' would not include any agricultural land which is not situated in any area within such distance as may be specified in this behalf by a notification in the Official Gazette which may be issued by the Central Government. The maximum distance prescribed by section 2(14)(b) of the Act which may be incorporated in the notification could not be more than 8 kms. from the local .....

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plane or as per crow's flight then it would have no relationship with the statutory requirement of keeping in view the extent of urbanization. Such a course would be illusory. It is in pursuance of the aforesaid provision that Notification No.9447, dated 6-1-1994 has been issued by the Central Government. In respect of the State of Punjab, at item No. 18, the Sub-Division, Khanna has been listed at serial No. 19. It has, inter alia, been specified that area up to 2 kms. from the municipal l .....

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ion which has taken place. Moreover, the judgment of the Mumbai Bench appears to have attained finality. Keeping in view the principle of consistency as laid down in Radhasoami Satsang v. CIT [1992] 193 ITR 321 (SC) we are of the view that the opinion expressed by the Tribunal does not suffer from any legal infirmity warranting interference of this Court. Accordingly question No. 1 is answered against the Revenue and in favour of the assessee by upholding the order of the Tribunal."

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n relation to the said assets. The net wealth is chargeable to tax. In the assessee's case the net wealth tax that a land situated in any area which is comprised within jurisdiction of a Municipality or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the valuation date and land situated within 8 kms from the local limits of such municipalities or cantonment as the Centr .....

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ction of Survey Nos.15,16,17,18,20, 21 and 22 Village Panchayat Siridao-Goa is not urban land. The village Panchayat of Siridao-Goa nearest Municipalities Corporation is the Panaji Municipal Corporation. As per the certificate the Village Panchayat of Siridao- Goa is more than 8 kms. Therefore, we are of the view that the land of Siridao-Goa of the assessee Survey Nos.15,16,17,18,20,21 and 22 is not urban land as per Section 2(ea), therefore, it is not an asset. Thus, we allow the add .....

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llowing substantial questions of law. Whether in law and in circumstances of the case the Hon'ble Income Tax Appellate Tribunal is correct in holding that the land in question situated at Siridao, Goa, bearing Survey Nos. 15, 16, 17, 18, 20, 21 and 22 of the assessee is not urban land as per Section 2(ea) of the W.T. Act and therefore, it is not an asset ? 5. The only question as such is whether any error was committed by the learned Tribunal while coming to the conclus .....

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ssioner of Income Tax, (1995) 129 CTR (Del) 33, the Hon'ble Delhi High Court referred to Explanation to S. 2(1A) relied upon by the Counsel for the Revenue and held that the surplus of the compensation amount arising as a result of acquisition of agricultural land in question was a capital asset and not the income at all. The question of change in the definition of agricultural income because of the insertion of the Explanation has no relevance. Thus, in the facts and circumstances of the ca .....

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ion for the land after assessment under the Land Acquisition Act, the ITO, while assessing that the Company was a dealer in lands, had held that the acquired land constituted the Company's stock-in-trade and compensation received by the Company was liable to be taxed as an income in three assessment years under consideration. The question which was raised was answered by the Delhi Court in paragraph 9 of the ruling under consideration, which reads thus : ".......This Court fu .....

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land, the question really involved a determination as to whether the price paid for the land by way of compensation could be included within the definition of agricultural income. It was further held that agricultural land was excluded from the definition of 'capital asset' occurring in s. 2(14)(iii) and, accordingly, any gain resulting from the acquisition of agricultural land was not income, and accordingly the answer to the said question was that the compensation amount was not income .....

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of agricultural land cannot be considered as business income. The ruling is squarely applicable to the facts and circumstances under our consideration in the present case as well. 15. In so far as relevance of Section 11 of the General Clauses Act is concerned, it needs to be noted that here the relevant amendment prescribing distance to be counted must be aerial has come into force w.e.f. 1st April, 2014. The need of the amendment itself shows that, in order to avoid any confusion, t .....

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