TaxTMI 
TaxTMI 
2022 (7) TMI 18
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....me had been filed by the assessee during the year disclosing any gain on the same. That subsequently after calling for relevant information from the assessee during the reassessment proceedings and after considering the contentions made by the assessee to the effect that the impugned land did not qualify as capital asset u/s. 2(14) of the Act, since it was situated beyond 8 KM from the Ahmedabad Municipal Limits, the A.O. held that there was no truth in the contention of the assessee since the land was situated within 8KM of the municipal limits of Ahmedabad. He therefore held that capital gain earned on the said transaction was liable to tax and accordingly made addition of the entire consideration received by the assessee of Rs. 1.20 crores to the income of the assessee, in the absence of any details in respect of the cost of acquisition of the asset being furnished by the assessee. 2.1. The matter was carried in appeal before the ld. CIT(A) who held that the distance of the land had to be measured from the municipal limit of Ahmedabad as on the date of Gazette Notification issued by the CBDT spelling the limits of urbanization, on 06.01.1994. In this regard, he relied on the ....
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.... i.e. on the date of notification in No. (SO 9447)(File No. 164/3/87-ITA.1). 5. A perusal of the revised grounds reveals that the Revenue is primarily aggrieved on two counts by the order of the Ld. CIT(A) (i) that the Ld. CIT(A) had no power to set aside an issue to the AO. (ii) That the direction of the Ld. CIT(A) to measure the distance of the land from the municipal limits of Ahmedabad as on 06.01.1994 was not in accordance with law. 6. Before proceeding further it is relevant to reproduce the findings of the Ld. CIT(A) at Para 6 to 6.4 of the order as under: '"6.1 It is the contention of the appellant that the law as it stood dicing the relevant period the position of land has to be seen from the notification issued by Central Government In the-official Gazette in this regard. CBDT issued notification No. [SO 9447] (File No. 164/387-ITA.1, dated 06.01.1994) wherein the Municipal limits Ahmedabad Municipality was specified for the purpose of section 2(14)(iii) (b) of the Act. It is the contention of the appellant that the distance has to be measured from the Municipal limits as it existed on the date of notification i.e. on 06.01.1994 and not on the ....
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....in relation to assessment year 2014-15 and subsequent assessment year. For the period prior to assessment year 2014-15, the High Court held that the distance between the municipal limit and the agricultural land is to be measured having regard to the shortest road distance. The said decision of the High Court has been accepted and the aforesaid disputed issue has not been further contested. 3. 'Being a settled issue, no appeals may henceforth be filed on this ground by the officers of the Department and appeals already filed, if any, on this issue before various Courts/Tribunals may be withdrawn/not pressed upon. This may be brought to the notice of all concerned. IF/No. 279/Misc./140/2015-ITJ] (&S Chaudhry) CIT (A&J), CBDT" 9. Thus, if the finding of the ld. CIT(A) is being examined in the light of the circular, then on 6 thing is clear that the distance is to be measured by roads in this accounting year. The land sold by the assesses is situated beyond 8 KMs. of the municipal limit. 10. Next objection of the AO was that the State Government has enhanced the municipal limit in 2006 and the distance is to be measured from new boundary of the Ahmedabad....
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...., I deem it appropriate to set aside this issue to the AO. The Ld. AO shall call for report from the office of Revenue authorities under the State Government, and such authority shall determine the distance on the basis of municipal limit in the year 1994. To be precise on 06/01/1994, from that boundary upto the assessee's land, distance is to be measured After-ascertaining this aspect, the Ld. A.O. shall determine status of the land whether it falls within the exemption clauses provided in section 2(14)(iii) of the Income Tax Act, 1961 or not. The Ld. AO shall, thereafter, decide the computation of capital gain, if any. Such exercise be carried out after providing an opportunity of hearing to the assessee." 6.3 Appellant also relied on the decision of Hon'ble ITAT Ahmedabad in the case of ACIT v. Shri Govindbhai C. Patel ITA No. 1610/Ahd/2009. Further, appellant relied on the judgment of Hon'ble Gujarat High Court in the cases of [CIT vs. Jitendra Ramniklal [1986] 162 ITR 371 (Guj) and CIT v. Smt. Mamta Narottamdas [1986] 162 ITR 365 (Guj)]. Wherein it was held that where agricultural lands were sold by a document and till the date of execution and registratio....
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....s not carried out a proper exercise. Inspector is not a competent authority to find out geographic situation of land. Similarly, authority under Vadodara Urban Development Authority is also not a competent authority. Revenue record is maintained by State Government under Gujarat Land Revenue Act. Competent authority could be Assistant Collector (Agriculture)/Mamlatdar or any other Revenue officials who in discharge of their official duties maintain land records of entire State. They can be the proper officials to give an authentic certificate about geographical situation of the land in dispute from the municipal area. The second aspect is that municipal limit is dynamic and keeps on changing over a period of time. Therefore, an explanation has been given at the end of the notification that municipal limit is the limit as existing on the date of publication of the notification and not the limit on the date of transaction or as on date In other words, the point from where municipal limit is to be taken for measuring the distance up to the land of assessee is the year 1994. The AO has taken cognizance fresh municipal limit notified by the Vadodara Urban Development Authority. That is ....