TaxTMI 
TaxTMI 
2022 (4) TMI 1099
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.... 1961 (hereinafter 'the Act') for the A.Y. 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 whe....
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....bsequently, the AO received information from DIT(I & CI) regarding sale of 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 situat....
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....es not fit into the definition of agricultural land but it partake the character of capital asset falling u/s.2(14)(iii) of the Act. This matter was referred to the JCIT, Range-1, Chennai by the assessee 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)....
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....tention to para 4 of the directions issued by JCIT vide letter dated 30.12.2017 and stated that even the Tahsildar who is Nodal Officer for the Revenue Department vide letter dated 22.12.2017 stated that 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....
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....ncerned document is enclosed. In view of the above, the ld.counsel for the assessee stated that the distance of land in question situated at No.111, Varadarajapuram village and the outer municipal limit 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 ....
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....7 kms from outer limits of Tambaram municipality. On the other hand, the assessing officer vide notice u/s 133(6) dated 22/11/2017 sought certain details of the land from the Tahsildar, Sriperumbudhur Taluk. In response to the above notice, the Tahsildar vide letter dated 22/11/17 made submissions. In the said submission, the Tahsildar has stated that the land in question is situated within 4 Km approximately from the outer limits of Tambaram Municipality." 7.1 We have also gone through the web documents filed by assessee in her paper-book at pages 1 to 3 and particularly page 3, the land in question, when measured aerially the distance from outer limit of Tambaram Municipality is 8.14 kms (5.06 miles). Even the VAO vide his certificate ....