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TMI Blog2018 (12) TMI 1831X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 3. In this appeal, the assessee has raised the following grounds:- "1. The order of the learned Commissioner Of Income (Appeals)-4, is wrong, illegal and is opposed to law. 2. The learned CIT(A) ought to have that the learned Assessing officer erred in re-opening the assessment which was completed under scrutiny. The said re-opening is wrong, illegal and is opposed to law and facts of the case. 3. The learned assessing officer erred in re-opening the assessment beyond without any additional tangible material to show that income has escaped assessment. 4. The learned CIT(A) ought to have seen that while filing the return for the A.Y.2011-12 the appellant had disclosed its sale of agricultural land and also disclosed that the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t had claimed the income from the sale of said land as exempt since the same is not a capital asset as per the provisions of section 2(14) (iii) of the Income tax Act. 9. The learned CIT(A) erred in law in disallowing the alternate claim made by the appellant under section 54F of the Income Tax Act. The learned CIT(A) ought to have seen that the appellant had invested the entire sale proceeds for purchase as residential flats which was classified by the development control authority and by the competent authority as residential flats." 4. It was submitted by ld.A.R that ground Nos.2 to 6 of assessee's appeal was against reopening of assessment. It was submitted that Ground Nos.7 & 8 was against the action of the ld.CIT(A) in confirming t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were purchased as agricultural land. It was a submission that on 18.01.2011, 50 Cents of the land was sold through sale deed and the balance 50 Cents was transferred by a Power of Attorney. Copies of Sale deed and Power of Attorney for sale of Uthandi land were shown at pages 45 to 85 of the paper book. It was a submission that in the sale deed also, the property has been shown only as agricultural land. It was a further submission that the assessment order in the case of assessee's wife, Smt. Seema Shroff, has also been completed on 14.03.2014 wherein the claim of agricultural land had been accepted. The ld.A.R drew our attention to pages 101 to103 of Paper book relating to assessment order of Seema Shroff. It was a submission that the cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the outer limits of nearest Municipality, which was Tambaram Municipality. It was also located more than 8 Kms away from the outer limits of Chennai Corporation." It was a submission that reopening of assessment on the basis of Gazettee Notification was clearly a change of opinion and is liable to be struck down. 5. It was a submission that on merits, the assessee has sold only agricultural land and the sale of the agricultural land cannot be treated as giving rise to capital gains assessable u/s.45 of the Act. It was a submission that even otherwise the assessee has invested the sale consideration in constructing a residential property. The ld.A.R placed before us a copy of the letter from the Executive Engineer, Zonal Office, Greater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld.D.R vehemently supported the Ld.CIT(A). It was submitted by ld.D.R that Gazettee Notification clearly showed the land sold to fall within the city corporation limit as on 09.11.2010. It was a submission that the sale having taken placed on 18.01.2011, the property sold cannot be treated as agricultural land. It was a submission that the Tribunal had wrongly interpreted the Gazettee Notification in the case of shri N.K.V.Krishna referred to supra. It was a submission that benefit of deduction u/s.54F cannot be granted to the assessee in so far as the property was a commercial property. It was a submission that the order of the CIT(Appeals) was liable to be upheld. 7. We have considered the rival submissions. A perusal of the letter of as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act on 14.03.2014 accepting the claim on sale of agricultural land remains undisturbed. This being so, clearly the reopening being on change of opinion, the same is unsustainable and consequently quashed. 8. Even on merits, what has been sold by assessee is only agricultural land in so far as the sale deed was executed on 18.01.2011 whereas the said Uthandi village has come within the Corporation limit by virtue of the Government Order No.97 dated 19.07.2011 as has already been held by the Co-ordinate Bench of the Tribunal in the case Shri N. K. V. Krishna referred to supra. In respect of an alternate claim of assessee that the assessee has also alternatively eligible of deduction u/s.54F. Admittedly, the certificate issued by Execu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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