2012 (11) TMI 1131

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.... sold 5.21 acres of land in re-survey No.696/3 at Kakkanad village for development of housing project. In fact, the housing project was commenced on 21-04-2006. According to the ld.representative, the land sold by the taxpayer falls within the jurisdiction of Greater Cochin Development Authority and metropolitan area of Kochi. Therefore, according to the ld.representative, the subject matter of the land cannot be considered to be an agricultural land. According to the ld.representative, since the land falls within the metropolitan area of Kochi it has to be treated as capital asset. Therefore, the gain arising on sale of land has to be taxed under the capital gain tax. 4. On the contrary, Shri S.R. Lokanathan, the ld.representative for the....

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....local limits of any municipality or cantonment board referred to in item (a), a the Central Government may, having regard to the extent of, and scope for, urbanization of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette." In view of this definition it is obvious that in any area which is comprised within the jurisdiction of a municipality which has a population of not less than ten thousand would be treated as capital asset even though the land is used for agriculture. The Central Government is also empowered to issue notification extending the area after taking into consideration the extent and scope for urbanisation. In fact, the Central Government issued notification on 06-01-19....