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TMI Blog2015 (6) TMI 1067X X X X Extracts X X X X X X X X Extracts X X X X ..... ts original return of income on 14.03.2011 for the assessment year 2008-09 admitting income under the head "income from other sources" of Rs. 8,72,770/- and NIL income under the head "long term capital gain". The assessee had further disclosed in its return of income the sale of its agricultural land at Keeantham village for Rs. 9,25,47,000/- and the capital gain arising from the sale of the land as exempt because the assets sold was agricultural land situated beyond 8 Kms of municipal limit. Since the Ld. Assessing Officer had reasoned to believe that the land was situated within 8 Kms of municipal limit, a notice U/s. 148 was issued and finally assessment was made on 31.03.2013 U/s. 143(3) r.w.s.147 of the Act, wherein the Ld. Assessing Officer held that the land was situated within 8 Kms of the municipal limit and therefore the assessee was liable to capital gain tax and accordingly assessed the long term capital gain as Rs. 9,25,19,770/-. While arriving at such decision the Ld. Assessing Officer disregarded the query raised by the Revenue [vide their letter dated 07.03.2013 to furnish the distance as per record (measured at shortest route) with respect to survey No.574/2,575/2, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on 30.04.2008. 10. The notice- u/s 148 was issued by the Assessing Officer indicating the reasons to the appellant stating that the claim of exemption cannot be allowed since the Inspector of the Department has reported that the said land is situated at a distance of 7.5 KMs from the Coimbatore Corporation Limits. A detailed reply was filed on 15.02.2013 with the Assessing Officer objecting to the re-opening. The appellant also filed the relevant evidence to confirm that the location of the land is more than 8 KMs from the Coimbatore Corporation Limits. The appellant filed the details of Patta passbook and also the adangal and chitta register copies' to prove that the land is agricultural land. The appellant also filed a copy of the starting point and the Corporation Limits of Coimbatore Municipal Corporation certified by the Sub Inspector of Survey, North Zone, Coimbatore Corporation dated 08.02.2013. A certificate issued by the Inspector of Survey and Land Records Maintenance, Coimbatore North, Collectorate Compound dated 20.12.2010 was filed before the Assessing Officer. In this certificate it was clearly mentioned that the agricultural land in Keeranatham Panchay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as the starting point for measuring the distance to the site it was found to be 7.9 KMs. The Assessing Officer after examining the details wrote'a letter to the Inspector or Survey and Land Records Maintenance, Coimbatore (North) Collectorate Compound, Coimbatore on 07.03.2013 asking the Inspector of Survey to furnish the distance measured at shortest route with respect to Survey Nos. 574/2, 575/2, 576/2, 577, 578/1, 579/1 and 582/1 located at Keeranam Puduppalayam Village to the nearest Coimbatore Corporation limit as per the records for the Financial Year 2007-08. 12. As seen from the records on 08.03.2013, a letter was addressed by the ACIT, Circle-II, Coimbatore to the ITa (Investigation), Coimbatore referring to the letter of the letter of the ITa (Inv.) dated 05.03.2013 wherein it was stated that the land seems to be located within 8 KMs from the municipal limits of Coimbatore. The ITa (Inv.) in his letter dated 13.03.2013 stated that the distance was measured from the "City Bakery" which is situated in the corner of Athipalayam Road which leads to Keeranatham Puduppalayam Village [bearing Survey Nos. 574/2, 575/2, 576/2, 577, 578/1, 579/1 and 582/1] via Chinnavedampat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 582/1 in Keeranantham Panchayat, Keeranam Puduppalayam Village, Coimbatore District to measure the shortest distance to the said land from the Coimbatore Corporation Limit (2007-2008). For this purpose, I have measured the distance from the Coimbatore Corporation Limit at Sathy Road, Coimbatore, being the exact starting point (landmark : beyond Ramakrishna Mills at LGB Nagar Pirivu - Gowtham Towers, Aishwarya Bakery and Jayam Medicals) to measure the distance as required to the said land as per the Coimbatore Corporation Limit plan as was in the year 2007-2008. From that point as mentioned above by the shortest road route to the said agricultural land the distance measures at 9.13 KMs". 14. Basing on the certificate issued by the Inspector of Survey and Land Records (Maintenance), Coimbatore (North), Collectorate Compound, Coimbatore, the Assessing Officer issued a letter dated 15.03.2013 asking him to clarify the exact place from which the distance is to be measured. In this letter addressed to the Inspector of Survey and Land Records (Maintenance), Coimbatore (North), it was also mentioned that the Inspector of Income Tax made enquiry at Chinnavedampatti Panchayat and the Corp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the year 2007-2008. Since it is the information received by the Assessing Office-r from the concerned Department, the Assessing Officer cannot brush aside the information received from the Inspector of Survey and Land Records (Maintenance). The Inspector of Income Tax has only made enquiry with the Chinnaveqampatti Panchayat and has come to the conclusion that the Corporation Limit ends at Gopalakrishna Mill / City Bakery. There is no authenticated map or information to this extent. The report of the ITO (Inv.) as discussed earlier cannot be considered without proper authentication from the concerned Authority regarding the Municipal Corporation out limit. In my opinion the Assessing Officer erred in taking a decision in favour of the Revenue based on the Departmental Report which is not properly authenticated. The Inspector of Income Tax report against the clarification by various State Government Authorities, (that too, independently verified by the Assessing Officer) cannot be accepted relying on the case of CIT Vs Lalsingh and Other (reported in 325 ITR 588) - Punjab & Haryana High Court. Since it is very clearly proved that the lands are agricultural land situated beyon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ends on sathy road (land mark when visited: near Gowtham complex, Aishwarya bakery, and Jayam medicals) taken by the approachable shortest road route from boundary of Coimbatore corporation limits at Sathy road via Sivananda puram, Saravanampatty, Keeranatham village to Keeranatham puduppalayam village till the land is situated and 16 km from Coimbatore railway station as per Coimbatore corporation limit plan. Inspector of Survey and Land Records maintenance Coimbatore (North) Collectorate compound Coimbatore. To Mr. K. Prabakaran, 291, Avaram Palayam Road, Sidhapudur, Post, Coimbatore 641 044. 31.08.2012 SUB INSPECTOR OF SURVEYS, Coimbatore Corporation - North Zone, Coimbatore. C/office ref: Your letter dated 06.07.2012 Sub: Issue of distance certificate - Reg. CERTIFICATE I have been requested to certify the distance by road from the limit of Coimbatore corporation (as existed in the year 2007-2008) till the location of agricultural land in SF nos. 574-579 and 582 at keeranatham puduppalayam village by Mr. K. Prabakaran residing at 291, Avarampalayam road, Sidhapudur, Coimbatore 641 044. In this regard, I hereby certify that I have personally vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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