TaxTMI 
TaxTMI 
2022 (4) TMI 1099
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....2014-15 vide order dated 30.12.2017. 2. The short point under dispute is whether the assessee's land in question is located within 6 kms of aerial distance or outside 6 kms of aerial distance from the municipal limits of Tambaram Municipality and that of the land in question which is in village Varadarajapuram. For this Revenue has raised following ground Nos.2, 3 & 4:- 1. The order of the Ld. CIT(A) is contrary to law, facts arid circumstances of the case. 2. The Ld.CIT(A) erred in giving relief to the assessee by holding that AO failed to prove the fact that the land in question was located within 6 kms of aerial distance from the municipal limits of Tambaram Municipality when JCIT, Range- 1, Chennai in directions under section 144A ....
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....land from which assessee has not disclosed any capital gain and accordingly assessee's case was reopened u/s.147 r.w.s. 148 of the Act. Notice u/s.148 of the Act was issued on 19.12.2016 and served on one Ms. Balasaraswathi, legal representative of late T. Bhavani Devi, who passed away on 19.01.2015. The assessee requested vide letter dated 15.05.2017 that the return filed on 24.07.2014, as originally filed, be treated as one in response to notice issued u/s.148 of the Act. The AO during the course of assessment proceedings revealed the information that the assessee along with other co-owners has sold five immovable properties i.e., land admeasuring 9.38 acres situated at 111, Varadarajapuram Village, Sriperumbudur Taluk, Kancheepuram Distr....
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....sessee u/s.144A of the Act for directions and the JCIT, vide his letter dated 30.12.2017 issued directions and in directions, he noted that the village Varadarajapuram is only 4.17 kms from the outer limit of Tambaram Municipality. The AO treating the same as capital asset liable to capital gains, in view of directions of JCIT, Range-1, Chennai assessed the income under Long Term Capital Gains. Aggrieved, assessee preferred appeal before CIT(A). 4. The CIT(A) after going through the certificate issued by the Village Administrative Officer (VAO) who certified that the land in question is covered under Kundrathur Panchayat Unit and situated at a distance of 7 kms away from Tambaram Municipality. He also noted from the copy of map i.e., Googl....
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....at the land in question is situated within 4 kms approx. from the outer limit of Tambaram Municipality. The ld.CIT-DR stated that once this fact is established that the land in question is situated within the limit of 6 kms, the land in question is capital asset liable to capital gains and the AO has rightly charged Long Term Capital Gain tax on the same. Accordingly, he asked the Bench to reverse the order of CIT(A) and sustain the order of AO. 6. On the other hand, the ld.counsel for the assessee Shri G. Baskar first of all took us to the same directions issued by the JCIT vide letter dated 30.12.2017 and relevant point 8(iv), which was referred by CIT-DR was read out by him. He stated that from this it is clear that the distance measure....
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....of Tambaram Municipality is actually 8.14 kms and this is the shortest aerial distance. According to him the land in question cannot be assessed as capital asset falling under Long Term Capital Gain tax. 7. We have heard rival contentions and gone through facts and circumstances of the case. We noted that the JCIT vide his directions dated 30.12.2017 has noted the fact in 8 (iii) & (iv) as under:- 8 (iii) The maps above depict the outer limit of Tambaram Municipality being the nearest municipality to Varadarajapuram and also the limits of Karasangal which is an area located beyond Varadarajapuram. From the map it may be seen that a point beyond Varadarajapuram that too on the other end of Karasangal itself is only 5.65 kms from the outer....