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Assistant Commissioner of Income Tax, Circle-II, Coimbatoe. Versus Shri KRN Prabhakaran (HUF)

2015 (6) TMI 1067 - ITAT CHENNAI

Long term capital gain - sale of agriculture land situated within 8 Kms from the municipal limit - nature of land sold - Held that:- The Survey department of the state Government and the Thasildar of the relevant Zone have consistently certified that the land is situated beyond 8 Kms from the Corporation limit of Coimbatore. The genuineness of the letters from the State Government authorities is also not in dispute. Moreover, the Ld. CIT (A) in his detailed order, has held that the land sold by .....

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P.Radha Krishnan,JCIT D.R Respondent by : Mr.D. Anand, Advocate O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: This appeal is filed by the Revenue, aggrieved by the order of the Learned Commissioner of Income Tax(A)-I, Coimbatore dated 13.08.2014 in ITA No.192/13-14, passed under Section143(3) read with Sections 147 & 250 of the Income-tax Act. 2. The Revenue has raised six argumentative & elaborate grounds in its appeal, however, the crux of the issue is that:- The Ld.CIT (A) had .....

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377; 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 ₹ 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 wa .....

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rd (measured at shortest route) with respect to survey No.574/2,575/2, 577, 578/1, 579/1 & 578/1 located at Keeranam Pudupalayam village to the nearest Coimbatore corporation limit for the F.Y. 2007-08] with the Inspector of Survey and Land Records (Maintenance), Collectorate, Coimbatore who had answered as follows:- I have measured the distance from the Coimbatore Corporation limit at sathy road, Coimbatore being exact starting point(Land mark: beyond Ramakrishna mills at LGB nagar,Piriru-G .....

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from the Corporation limit of Coimbatore. 3.2. On appeal, the Ld. CIT (A) elaborately considered the issue and decided the matter in favour of the assessee. The relevant portion of the detailed order is reproduced herein below for reference 9. I have gone through the grounds of appeal and also the order of the Assessing Officer. As seen from the facts available on record, the predominant activity of the appellant was agriculture and the said property sold by the appellant was an ancestral prope .....

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imbatore) certifying that the SF Nos.574/2, 575/2, 576/2, 577, 578/1, 579/1, and 582/1 are lands clearly situated beyond 8.4 KMs from the Coimbatore Corporation Limits. The land measuring 4.02 Hectares is situated at a distance of 8.4 KMs from the Coimbatore Corporation limits. This certificate was issued by the Tahsildar (North Coimbatore) being the Revenue Authority of the village and is competent to issue such a certificate. This certificate was issued on 30.04.2008. 10. The notice- u/s 148 w .....

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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 da .....

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aken by the approachable shortest road route from boundary of Coimbatore Corporation limits at Sa thy Road via Sivanandapuram, Saravanampatty, Keeranatham Village to Keeranatham Puduppalayam Village where the land is situated at 16 KM from Coimbatore Railway Station as per Coimbatore Corporation limit plan. The appellant also filed a certificate from the Tahsildar [North Coimbatore] dated 30.04.2008 which states that the said land bearing Survey Nos. 574/2, 575/2, 576/2, 577, 578/1, 579/1 and 58 .....

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d 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 is 9.1 KMs. The land mark when visited was shown as near Gowtham Complex, Aishwarya Bakery and Jayam Medicals. The Sub Inspector of Surveys, Coimbatore Corporation - North Zone in his Certificate dated 08.02.2013 [which was submitted to the Assessing Officer] included a map showing the place of Corporation Limit end. It .....

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natham Road during the Financial Year 2007-08. Keeping this 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 .....

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3.2013 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 Chinnavedampatti (where property of Sri Prabhakaran is situated) and Rabindranath Tagore Road. The letter also states that the Rabindranath Tagore Road is the Corporation Limit during the period in which Shri Prabhakaran had disposed off his HUF p .....

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sides are within the Corporation Limit. A photocopy of the Municipal Passbook and property tax receipts issued by the Coimbatore Corporation for the period from 2001-02 to 2011-12 to a property belonging to Shri P.G. Mahalingam and Shri P. Mani which is situated on Rabindranath Tagore Road, adjacently opposite to the "City Bakery" is enclosed as proof/evidence of Corporation" Limit. The distance between these "City Bakery" and the property of Shri P.G. Mahalingam and&quo .....

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the starting point for measuring the distance is not on sound reasoning of any evidence from Corporation Authorities. The municipal tax passbook and property tax receipt did not indicate the Corporation Limit to measure the distance from the Corporation Limit to the lands of the appellant. The Assessing Officer again wrote a letter dated 15.03.2013, to the Inspector of Survey after receiving a Certificate from the Inspector of Survey and Land Records Maintenance. In the Certificate dated 15.03. .....

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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 (M .....

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the Assessing Officer, the Inspector of Survey and Land Records (Maintenance), Coimbatore (North), clarified that the exact point will be only at (landmark) beyond Ramakrishna Mills, at LGB Nagar Pirivu - Gowtham Towers, Aishwarya Bakery and Jayam Medicals) and not from Gopalakrishna Mills / City Bakery or any other place as per the Coimbatore Corporation Limit plan as was in the year 2007-2008. 15. As seen from the assessment order, the Assessing Officer has considered the report of the Invest .....

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nd by the assessee attracts capital gains and the assessment is completed accordingly". As seen from the ITO (Inv.) report and the Inspector's report, the outer limit of Municipal Corporation was considered as "City Bakery" from which the distance was measured. The ITO (Inv.) letter does not specify the basis on which Rabindranath Tagore Road was taken as the Corporation Limit by him for measuring the distance of Municipal Limits. It is not clear how the Municipal Tax Passbook .....

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ends at Gopalakrishna Mills / City Bakery. The Inspector of Survey and Land Records (Maintenance) who is the authority has clarified that the exact starting point will be only at LGB Nagar Pirivu - Gowtham Towers, Aishwarya. Bakery and Jayam Medicals and not from City Bakery or any other place, as per Coimbatore Corporation City Limits 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 .....

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imit. 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 land .....

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the Coimbatore. It was therefore submitted that the finding of the Revenue will supersede the certificates given by the State Government Departments and the issue has to be decided on that basis. The Ld. A.R. relied on the order of the Ld. CIT (A) and argued in support of the same. 5. We have heard both the parties and carefully perused the materials available on record. The following reports submitted by the relevant authorities that are forming part of the paper book produced before us and al .....

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0 Hectare 575/2 0.17.0 Hec. 576/2 0.09.0 577 0.66.5 578/1 0.62.5 579/1 1.57.0 582/1 0.51.0 Total : 4.02.0 Hec Signed TEHSILDAR Dt 30.4.08 Coimbatore - (North) Round Seal of Tehsildar/ Taluk Judge. Coimbatore Recipient, Short sign of Clerk Date: 30.4.2008 Mr. K. Prabakaran, 291, Avaram Palayam Road, Sidha pudur, Post, Coimbatore 641 044. TRANSLATED FROM TAMIL TO ENGLISH INSPECTOR OF SURVEY AND LAND RECORDS MAINTANCE, Coimbatore (North) Collectorate Compound, Coimbatore 641 018. Dated : 20.12.2010 .....

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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, Coim .....

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t I have personally visited and found the shortest distance from the near by Coimbatore corporation limits ( as was in the year 2008) at Sathy road (land mark when visited: near Gowtham compleX, Aishwarya bakery, and Jayam medicals) to the agricultural land in SF numbers 574/2,575/ 2, 576/2, 577, 578/1, 579/1 and 582/1 at Keeranatham puduppalayam village is 9.1 kms measured by the shortest approachable road route taken from boundary of Coimbatore Corporation limit via. Sivananda puram, Saravanam .....

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