2019 (8) TMI 733

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..... eply to the effect that during the financial year 2014-15, he had sold agricultural property worth Rs. 2,13,04,588/- which were situated in Villukury C village, Kalkulam Taluk, Kanyakumari District. It is not in doubt that as per the revenue records, the lands in question are agricultural in character. It is also not in dispute that Villukury Village is comprised in a town panchayat. However, the respondent by the impugned assessment order dated 28.12.2017 took the view that even though the lands sold are agricultural lands, capital gain is attracted on their sale since it is situated within 6 kms from Nagercoil Municipality. The lands in question were considered as a capital asset under Section 2(14) of the Act as the lands are within 6 km .....

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..... ition of the term "capital asset" as found in Section 2(14) of the Act, the authority ought to have taken into account the actual distance from Padmanabhapuram Municipality and not from Nagercoil Municipality. The learned counsel for the writ petitioner would invoke the concept of jurisdictional municipality. It is his further contention that even though the relevant section underwent a substantial amendment during the year 2014, the concept of jurisdictional municipality still retain its relevance. According to him, the subject agricultural lands are coming under Padmanabhapuram Division and not in Nagercoil Division. The writ petitioner's counsel would refer to the decisions reported in (2014) 50 Taxmann.com 39, (2010) 188 Taxman 54 ( .....

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..... al limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten thousand but not exceeding one lakh; or (II)not being more than six kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than one lakh but not exceeding ten lakh; or (III)not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten lakh. Explanation.-For the purposes of this sub-clause, "population" means the population according to the last preceding census of which the relevant figures have been published before the first day of the .....

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