TMI Blog2015 (6) TMI 1067X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 erred in deleting the addition made by the Assessing Officer on account of long term capital gain of ₹ 9,25,47,000/- being sale of agriculture land situated within 8 Kms from the municipal limit by holding that the agricultural land was situated beyond 8 Kms of the municipal limit. 3.1 The brief facts of the case are that the assessee is a HUF, filed its original return of income on 14.03.2011 for the assessment year 2008-09 admitting income under the head income from other sources of ₹ 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 capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g that the said land is an agricultural land and the income on sale of the same will be out of the purview of capital asset as per Section 2(14)(iii) of the Income Tax Act, 1961. The claim of exemption was made in the return based on the certificate of distance issued by the Tahsildar (North Coimbatore) in April 2008. The appellant filed a copy of the letter obtained from the Tahsildar (North Coimbatore) 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 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 detaile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 was mentioned in the Certificate that the place of Corporation Limit would be only from L.G.B. Nagar Pirivu, Gowtham Complex, Aishwarya Bakery and Jayam Medicals [Near Ramakrishna Mills] at Sathy Road, Ganapathy Village. The Inspector of Income Tax, % ACIT, Circle-II, Coimbatore, in her report dated 08.02.2013 submitted that as per the details gathered it was ascertained that the limit for the Coimbatore Corporation ends near a bakery called the CITY BAKERY on the Coimbatore - Keeranatham 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 di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on that Rabindranath Tagore Road is the Corporation Limit during the period in which Shri Prabhakaran had disposed-off the property. Hence taking City Bakery as 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 15.03.2013, the Inspector of Survey and Land Records (Maintenance), Coimbatore submitted that as required by your end, I have visited the agricultural land with Survey Nos. 574/2, 575/2, 576/2, 577, 578/1, 579/1 and 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not clear how the Municipal Tax Passbook and Property Tax Receipts issued by Coimbatore Corporation to a property belonging to Shri P. G. Mahalingam and Shri P. Mani (situated at Rabindranath Tagore Road) can be considered as the proof/ evidence of Corporation Limits. 16. As seen from the records, the Assessing Officer has written to the Inspector of Survey and Land Records (Maintenance) regarding clarification on the enquiries made by the Inspector of Income Tax at Chinnavedampatti Panchayat to be informed that the Corporation Limit 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 information received from the Inspector of Survey and Land Records (Maintenance). The Inspector of Income Tax has only made enquiry with the Chinnav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S.F. Number Area 574/2 0.39.0 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. C/ office ref: L. Dis.1189/10. CERTIFICATE This is to certified that the agricultural land in Keeranathan panchayat, Coimbatore district bearing survey numbers 574/2,575/ 2,576/2, 577, 578/1, 579/1 and 582/1 at Keeranam puduppa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our letter F. No.AAIHK 0748M/ CIR II/CBE /12-13 Our off. Ref. C. No.112/13, Dated 11.03.2013. CERTIFICATE With reference to the above cited letters, also as required by your end, I have visited the agricultural land with survey numbers 574/2, 575/2,576/2, 577, 578/1, 579 and 582/1 in Keeranatham 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 (land mark: beyond Ramakrishna Mills at LGB Nagar Pirivu- Gowtham tower, Aiswarya bakery and Jayam medical) 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 km. Inspector of Survey and Land Records. (Maintenance) Coimbatore. To Assistant Commissioner of Income Tax, Circle II, Coimbatore. 6. From the above it is crystal clear that the Survey department ..... X X X X Extracts X X X X X X X X Extracts X X X X
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