2012 (10) TMI 564

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....s of the case are that the assessee filed return of income relevant to the assessment year 2008-09 on 24.12.2008 declaring income of Rs.3,02,440/- along with agricultural income of Rs. 75,000/-. During the relevant assessment year, the assessee/appellant had sold agricultural land situated in Korkadu village, Bahour Commune, Pondicherry, which according to the assessee is situated at a distance of 14 kms. from the municipal limits of Pondicherry. The return of the assessee was taken up for scrutiny and a notice under section 143(2) was issued to the assessee on 9.9.2009. During the course of assessment proceedings the assessee admitted before the Assessing Officer that she sold agricultural land measuring 1 Hectares 81 acres and 28 centiare....

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....tion dated 6.1.1994, further amended by Notification dated 28.12.1999. In order to fortify his submissions, the counsel for the assessee relied on the judgement of the Hon'ble Punjab & Haryana High Court in the case of CIT vs. Satinder Pal Singh, reported as 229 CTR (P &H) 82, wherein it has been held that distance of agricultural land within the meaning of section 2(14)(iii)(b) has to be measured in terms of approach road and not by straight line on horizontal plane or as per crow's flight. 4. On the other hand, the D.R. representing the Department supported the order passed by the CIT(A) stating that the impugned order is a well-reasoned and detailed order. 5. We have heard the submissions made by the parties, have gone through the ....

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....n horizontal plane or as per crow's flight then it would have no relationship with the statutory requirement of keeping in view the extent of urbanization. Such a course would be illusory. It is in pursuance of the aforesaid provision that notification No.9447 dated 6.1.1994 has been issued by the Central Government. In respect of the State of Punjab, at item no.18 the sub division Khanna has been listed at serial no.19.It has interalia been specified that area upto 2 kms. from the municipal limits in all directions has to be regarded other than agricultural land. Once the statutory guidance of taking into account the extent and scope of urbanization of the area has to be reckoned while issuing any such notification then it would be incongr....