TaxTMI 
TaxTMI 
TaxTMI 
2016 (10) TMI 47
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...., because the assets sold was agricultural land situated beyond 8 Kms of municipal limit. Since the Assessing Officer reasoned to believe that the land was situated within 8 Kms of municipal limit, a notice under Section 148 was issued. The Assessing Officer, vide letter, dated 07.03.2013, requested the Inspector of Survey and Land Records (Maintenance), Coimbatore, to furnish the distance, as per record (measured at shortest route) with respect to S.Nos.574/2, 575/2, 577, 578/1, 579/1 & 578/1 located at Keeranam Pudupalayam village to the nearest Coimbatore Corporation limits. Responding to the query, the Inspector of Survey and Land Records (Maintenance), Coimbatore, has answered as follows:- "I have measured the distance from the Coimbatore Corporation limit at Sathy road, Coimbatore being exact starting point (Land mark: beyond Ramakrishna mills at LGB Nagar, Piriru- 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 007 - 08. From that point as mentioned above by the distance road route to the said agricultural land the distance measures at 9.13 Kms." 3. Howev....
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....e correct distance for the purpose of Section 2 (14) of the Income Tax Act?" 8. Praying for an answer on the substantial questions of law, in favour of the appellant, Mr.T.R.Senthil Kumar, learned Senior Standing Counsel for the Income Tax Department, assailed the correctness of the order of the Income-Tax Appellate Tribunal, "A" Bench, Chennai, dated 22.06.2015, inter alia that, (i) There are two possible routes to the property of the assessee in question and the authorities in support of the assessee's claim adopted a longer route (via Saravanampatti) whereas the shorter route (via Chinnavedampatti) on which the Department relied has been totally ignored. (ii) The evidences collected by the ITO (Inv.) clearly indicate that from the Corporation limits, the lands sold by the assessee is situated within 8 Kms only. (iii) The land in question was not put to use for any agricultural purpose during the two years' period immediately preceding the date of transfer, as laid down in Section 10 (37) (ii) of the Income Tax Act. (iv) No agricultural income was returned by the assessee for the earlier assessment years. (v) The Tribunal had failed to appreciate that the asses....
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....al, are issued by the following authorities:- 1. Tahsildar (Coimbatore North) dated 30/4/2008. 2. Inspector of Survey & Land Records Maintenance, Collectorate Compound, Coimbatore, dated 20.12.2010. 3. Sub-Inspector of Survey, Coimbatore Corporation, North Zone, dated 31/8/2012. 4. Letter from Sub-Inspector of Survey stating the exact place of Corporation limit end to measure the distance along with a map. 5. Certificate of Inspector of Survey & Land Records Maintenance dated 15/3/2013 in response to A.O's letter dated 7/3/2013. 6. Letter of Inspector of Survey and Land Records Maintenance, dated 25/3/2013, in response to A.O's letter, dated 15/3/2013, regarding exact place from which distance is measured and 7. Patta passbook and certificates from Keranatham Panchayat." In the light of the above, he submitted that the well considered order of the Tribunal, does not call for any interference and prayed for dismissal of the appeal. 13. Heard the learned counsel appearing for the appellant and perused the materials available on record. 14. On the issue, as to whether, the agricultural land sold by an assessee, is situated more than the distance of 8 Kms from t....
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....same, as per the road distance and not as per straight line distance on a horizontal plane or as per crow's flight. When the said decision was challenged, the Punjab and Haryana High Court, held as follows: "A perusal of the aforesaid provision shows that 'capital asset' would not include any agricultural land which is not situated in any area within such distance as may be specified in this behalf by a notification in the official gazette which may be issued by the Central Government. The maximum distance prescribed by Section 2(14)(iii)(b) of the Act which may be incorporated in the notification could not be more than 8 Kms. from the local limits of municipal committee or cantonment board etc. The notification has to take into account the extent of, and scope for urbanization of that area and other relevant considerations. The reckoning of urbanization as a factor for prescribing the distance is of significant which would yield to the principle of measuring distance in terms of approach road rather than by straight line on horizontal plane. If principle of measurement of distance is considered straight line distance on horizontal plane or as per crow's flight then it would have....
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....to be measured from the land in question itself and not from the village in which the land is situated. 21. In Kunhunarayanan v. Aravindakshan reported in 1974 KLT 300, in the case of shifting of Kudikidappu under the Kerala Land Reforms Act, 1964 and dealing with Section 78(2)(e)(ii) of the Act, directing that the new site should be "within a distance of one mile from the existing Kudikidappu, the Kerala High Court held that the distance has to be calculated by some road or pathway over the which a person will have a right to approach the alternative site when proceeding thereto from the site of the existing Kudikidappu". 22. Reverting to the case on hand, let us consider the documents produced by the respondent, TEHSILDAR OFFICER Coimbatore North, Coimbatore 641 018. M.M. 4974/2008(A8) Date: 30.4.2008 CERTIFICATE This is to certify that Coimbatore North Taluk, in Keeranatham Village, the agricultural lands having the below mentioned SF Numbers, containing a total area of 4.02 Hectare are situated at a distance of 8.4 KM from the Coimbatore corporation limits. S.F. Number Area 574/2 0.39.0 Hectare 575/2 0.17.0 Hectare 576/2 0.09.0 Hectare 577 0.66.5 Hect....
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....the shortest approachable road route taken from boundary of Coimbatore Corporation limit via. Sivananda puram, Saravanampatty, Keeranatham Villge to Keeranathan puduppalayam village till the land is situated. Sub Inspector of Surveys Coimbatore Corporation North Zone To Mr. K. Prabakaran, 291, Avaram Palayam Road, Sidhapudur, Post, Coimbatore 641 044. INSPECTOR OF SURVEY AND LAND RECORDS MAINTANCE, Coimbatore (North), Collectorate Compound, Coimbatore 641 018. Dated 15.03.2013. Sub: Request the distance to land in SF Nos. 574-579 and 582 in Keeranatham Village - Reg. Ref: Your 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 star....
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....beyond Ramakrishna mills at LGB Nagar, Piriru-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 007 - 08. From that point as mentioned above by the distance road route to the said agricultural land the distance measures at 9.13 Kms". Another letter, dated 15.03.2013, was sent to the Inspector of Survey and Land Record Maintenance, Coimbatore, asked, "With reference to the certificate issued, you have mentioned the exact starting point to measure the distance for the survey numbers 574/2, 575/2,576/2, 577, 578/1, 579 and 582/1 has been mentioned as land mark: beyond Ramakrishna Mills at LGB Nagar Pirivu- Gowtham tower, Aiswarya bakery and Jayam medical), as per the Coimbatore Corporation Limit plan as was in the year 2007-2008. However, from the Inspector of Income-Tax enquiry at Chinnavedampatti Panchayat, we have been informed that the Corporation limit ends at Gopala Krishna Mills/City Bakery. Hence, we require the exact place from which the distance to be measured." The Inspector of Survey and land records in his certificate mentioned that, " for measuring the d....
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....is situated at a distance of 7.5 KMs from the Coimbatore Corporation Limits. A detailed reply was filed on 15.02.2013 with the Assessing Officer objecting to the re-opening. The appellant also filed the relevant evidence to confirm that the location of the land is more than 8 KMs from the Coimbatore Corporation Limits. The appellant filed the details of Patta passbook and also the adangal and chitta register copies' to prove that the land is agricultural land. The appellant also filed a copy of the starting point and the Corporation Limits of Coimbatore Municipal Corporation certified by the Sub Inspector of Survey, North Zone, Coimbatore Corporation dated 08.02.2013. A certificate issued by the Inspector of Survey and Land Records Maintenance, Coimbatore North, Collectorate Compound dated 20.12.2010 was filed before the Assessing Officer. In this certificate it was clearly mentioned that the agricultural land in Keeranatham Panchayat, Coimbatore District bearing Survey Nos. 574/2, 575/2, 576/2, 577, 578/1, 579/1 and 582/1 at Keeranam Puduppalayam Village is situated at a distance of 9.15 KMs measured as shortest distance from the nearby Coimbatore Corporation limit which ends ....
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.... Compound, Coimbatore on 07.03.2013 asking the Inspector of Survey to furnish the distance measured at shortest route with respect to Survey Nos. 574/2, 575/2, 576/2, 577, 578/1, 579/1 and 582/1 located at Keeranam Puduppalayam Village to the nearest Coimbatore Corporation limit as per the records for the Financial Year 2007-08. 12. As seen from the records on 08.03.2013, a letter was addressed by the ACIT, Circle-II, Coimbatore to the ITa (Investigation), Coimbatore referring to the letter of the letter of the ITa (Inv.) dated 05.03.2013 wherein it was stated that the land seems to be located within 8 KMs from the municipal limits of Coimbatore. The ITa (Inv.) in his letter dated 13.03.2013 stated that the distance was measured from the "City Bakery" which is situated in the corner of Athipalayam Road which leads to Keeranatham Puduppalayam Village [bearing Survey Nos. 574/2, 575/2, 576/2, 577, 578/1, 579/1 and 582/1] via Chinnavedampatti (where property of Sri Prabhakaran is situated) and Rabindranath Tagore Road. The letter also states that the Rabindranath Tagore Road is the Corporation Limit during the period in which Shri Prabhakaran had disposed off his HUF property. There....
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.... Corporation Limit at Sathy Road, Coimbatore, being the exact starting point (landmark : beyond Ramakrishna Mills at LGB Nagar Pirivu - Gowtham Towers, Aishwarya Bakery and Jayam Medicals) 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 KMs". 14. Basing on the certificate issued by the Inspector of Survey and Land Records (Maintenance), Coimbatore (North), Collectorate Compound, Coimbatore, the Assessing Officer issued a letter dated 15.03.2013 asking him to clarify the exact place from which the distance is to be measured. In this letter addressed to the Inspector of Survey and Land Records (Maintenance), Coimbatore (North), it was also mentioned that the Inspector of Income Tax made enquiry at Chinnavedampatti Panchayat and the Corporation Limit ends at Gopalakrishna Mills / City Bakery. In reply to the letter of the Assessing Officer, the Inspector of Survey and Land Records (Maintenance), Coimbatore (North), clarified that the exact point will be only at (landmark) beyond Ramak....
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....Inspector of Income Tax has only made enquiry with the Chinnaveqampatti Panchayat and has come to the conclusion that the Corporation Limit ends at Gopalakrishna Mill / City Bakery. There is no authenticated map or information to this extent. The report of the ITO (Inv.) as discussed earlier cannot be considered without proper authentication from the concerned Authority regarding the Municipal Corporation out limit. In my opinion the Assessing Officer erred in taking a decision in favour of the Revenue based on the Departmental Report which is not properly authenticated. The Inspector of Income Tax report against the clarification by various State Government Authorities, (that too, independently verified by the Assessing Officer) cannot be accepted relying on the case of CIT Vs Lalsingh and Other (reported in 325 ITR 588) - Punjab & Haryana High Court. Since it is very clearly proved that the lands are agricultural land situated beyond 8 KMs from the Corporation Municipal Limits, the income on sale of the agricultural land is exempt from taxation. The Assessing Officer is directed to delete the addition. The grounds of appeal are ALLOWED." 25. When the matter was taken on appeal b....