ACIT, Coimbatore V. K R N Prabhakaran (HUF), Coimbatore

ITA 2716/CHNY/2014

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9903 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2015
• Appeal Filed By: Department
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 31-10-2014
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNANJCIT
• Assessee Lawyers: D ANAND
• Keywords: Capital asset
• Section: 143(3); 147; 148

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . !' , # $ BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ./ I.T.A.NO.2716/MDS./2014 ASSESSMENT YEAR : 2008-09 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-II, COIMBATOE. VS. SHRI K R N PRABHAKARAN(HUF) OLD NO.291,NEW NO.55/1, AVARAMPALAYAM ROAD, NEW SIDDHAPUDUR, COIMBATORE 641 044. PAN AAIHK0748 M ( %& / APPELLANT ) ( '(%& / RESPONDENT ) / APPELLANT BY : MR.P.RADHA KRISHNAN,JCIT D.R / RESPONDENT BY : MR.D.ANAND,ADVOCATE / DATE OF HEARING : 24.04.2015 /DATE OF PRONOUNCEMENT : 22.06.2015 ) / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE REVENUE, AGGRIEVED B Y THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)-I, COIMBA TORE DATED ITA NO.2716/MDS/14 2 13.08.2014 IN ITA NO.192/13-14, PASSED UNDER SECTIO N143(3) READ WITH SECTIONS 147 & 250 OF THE INCOME-TAX ACT. 2. THE REVENUE HAS RAISED SIX ARGUMENTATIVE & ELAB ORATE GROUNDS IN ITS APPEAL, HOWEVER, THE CRUX OF THE ISS UE IS THAT:- THE LD.CIT (A) HAD ERRED IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF LONG TERM CAPITAL G AIN OF ` 9,25,47,000/- BEING SALE OF AGRICULTURE LAND SITUAT ED WITHIN 8 KMS FROM THE MUNICIPAL LIMIT BY HOLDING THAT THE AGRICU LTURAL LAND WAS SITUATED BEYOND 8 KMS OF THE MUNICIPAL LIMIT . 3.1 THE BRIEF FACTS OF THE CASE ARE THAT THE ASSES SEE IS A HUF, FILED ITS ORIGINAL RETURN OF INCOME ON 14.03.2011 FOR THE ASSESSMENT YEAR 2008-09 ADMITTING INCOME UNDER THE HEAD INCOME FRO M OTHER SOURCES OF ` 8,72,770/- AND NIL INCOME UNDER THE HEAD LONG TER M CAPITAL GAIN. THE ASSESSEE HAD FURTHER DISCLOSED IN ITS RETURN OF INCOME THE SALE OF ITS AGRICULTURAL LAND AT KEEANTH AM VILLAGE FOR ` 9,25,47,000/- AND THE CAPITAL GAIN ARISING FROM THE SALE OF THE LAND AS EXEMPT BECAUSE THE ASSETS SOLD WAS AGRICULTURAL LAND SITUATED ITA NO.2716/MDS/14 3 BEYOND 8 KMS OF MUNICIPAL LIMIT. SINCE THE LD. AS SESSING OFFICER HAD REASONED TO BELIEVE THAT THE LAND WAS SITUATED WITHIN 8 KMS OF MUNICIPAL LIMIT, A NOTICE U/S. 148 WAS ISSUED AND F INALLY ASSESSMENT WAS MADE ON 31.03.2013 U/S. 143(3) R.W.S.147 OF THE ACT, WHEREIN THE LD. ASSESSING OFFICER HELD THAT THE LAND WAS SI TUATED WITHIN 8 KMS OF THE MUNICIPAL LIMIT AND THEREFORE THE ASSESSEE W AS LIABLE TO CAPITAL GAIN TAX AND ACCORDINGLY ASSESSED THE LONG TERM CAP ITAL GAIN AS ` 9,25,19,770/-. WHILE ARRIVING AT SUCH DECISION THE LD. ASSESSING OFFICER DISREGARDED THE QUERY RAISED BY THE REVENUE [VIDE THEIR LETTER DATED 07.03.2013 TO FURNISH THE DISTANCE AS PER REC ORD (MEASURED AT SHORTEST ROUTE) WITH RESPECT TO SURVEY NO.574/2,575 /2, 577, 578/1, 579/1 & 578/1 LOCATED AT KEERANAM PUDUPALAYAM VILLA GE TO THE NEAREST COIMBATORE CORPORATION LIMIT FOR THE F.Y. 2 007-08] WITH THE INSPECTOR OF SURVEY AND LAND RECORDS (MAINTENANCE), COLLECTORATE, COIMBATORE WHO HAD ANSWERED AS FOLLOWS:- I HAVE MEASURED THE DISTANCE FROM THE COIMBATORE CO RPORATION LIMIT AT SATHY ROAD, COIMBATORE BEING EXACT STARTING POINT(L AND MARK: BEYOND RAMAKRISHNA MILLS AT LGB NAGAR,PIRIRU-GOWTHAM TOWER , AISWARYA BAKERY AND JAYAM MEDICAL) TO MEASURE THE DISTANCE AS REQUI RED TO THE SAID LAND AS PER THE COIMBATORE CORPORATION LIMIT PLAN AS WAS IN THE YEAR 2007-08. ITA NO.2716/MDS/14 4 FROM THAT POINT AS MENTIONED ABOVE BY THE DISTANCE ROAD ROUTE TO THE SAID AGRICULTURAL LAND THE DISTANCE MEASURES AT 9.1 3 KMS. HOWEVER THE LD.A.O RELIED ON THE REPORT OF THE INV ESTIGATION WING WHEREIN THEY HAD REPORTED THAT THE LAND IS LOCATED WITHIN 8 KMS FROM CITY BAKERY WHICH ACCORDING TO THEM IS NOT MOR E THAN 100 METERS FROM THE CORPORATION LIMIT OF COIMBATORE. 3.2. ON APPEAL, THE LD. CIT (A) ELABORATELY CONSIDERED T HE ISSUE AND DECIDED THE MATTER IN FAVOUR OF THE ASSESSEE. T HE RELEVANT PORTION OF THE DETAILED ORDER IS REPRODUCED HEREIN BELOW FOR REFERENCE 9. I HAVE GONE THROUGH THE GROUNDS OF APPEAL AND AL SO THE ORDER OF THE ASSESSING OFFICER. AS SEEN FROM THE FACTS AVAILABLE ON RECORD, THE PREDOMINANT ACTIVITY OF THE APPELLANT WAS AGRICULTU RE AND THE SAID PROPERTY SOLD BY THE APPELLANT WAS AN ANCESTRAL PROPERTY. IN THE YEAR 2008, THE ENTIRE LAND WAS SOLD. THE INCOME TAX RETURN FOR THE HUF WA S FILED MENTIONING THAT TH~ SAID LAND IS AN AGRICULTURAL LAND AND THE INCOM E ON SALE OF THE SAME WILL BE OUT OF THE PURVIEW OF CAPITAL ASSET AS PER SECTI ON 2(14)(III) OF THE INCOME TAX ACT, 1961. THE CLAIM OF EXEMPTION WAS MADE IN T HE RETURN BASED ON THE CERTIFICATE OF DISTANCE ISSUED BY THE TAHSILDAR (NO RTH COIMBATORE) IN APRIL 2008. THE APPELLANT FILED A COPY OF THE LETTER OBTA INED FROM THE TAHSILDAR (NORTH COIMBATORE) CERTIFYING THAT THE SF NOS.574/2 , 575/2, 576/2, 577, 578/1, 579/1, AND 582/1 ARE LANDS CLEARLY SITUATED BEYOND 8.4 KMS FROM THE COIMBATORE CORPORATION LIMITS. THE LAND MEASURING 4 .02 HECTARES IS SITUATED AT A DISTANCE OF 8.4 KMS FROM THE COIMBATO RE CORPORATION LIMITS. THIS CERTIFICATE WAS ISSUED BY THE TAHSILDAR (NORTH COIMBATORE) BEING THE REVENUE AUTHORITY OF THE VILLAGE AND IS COMPETENT T O ISSUE SUCH A CERTIFICATE. THIS CERTIFICATE WAS ISSUED ON 30.04.2008. ITA NO.2716/MDS/14 5 10. THE NOTICE- U/S 148 WAS ISSUED BY THE ASSESSIN G OFFICER INDICATING THE REASONS TO THE APPELLANT STATING THAT THE CLAIM OF EXEMPTION CANNOT BE ALLOWED SINCE THE INSPECTOR OF THE DEPARTMENT HAS R EPORTED THAT THE SAID LAND IS SITUATED AT A DISTANCE OF 7.5 KMS FROM THE COIMBATORE CORPORATION LIMITS. A DETAILED REPLY WAS FILED ON 15.02.2013 WI TH THE ASSESSING OFFICER OBJECTING TO THE RE-OPENING. THE APPELLANT ALSO FIL ED 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 C OPIES' 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 O F 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 KEE RANATHAM 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 ON SATHY RO AD (LANDMARK WHEN VISITED : NEAR GOWTHAM COMPLEX, AISHWARYA BAKERY, A ND JAYAM MEDICALS). TAKEN BY THE APPROACHABLE SHORTEST ROAD ROUTE FROM BOUNDARY OF COIMBATORE CORPORATION LIMITS AT SA THY ROAD VIA SI VANANDAPURAM, SARAVANAMPATTY, KEERANATHAM VILLAGE TO KEERANATHAM PUDUPPALAYAM VILLAGE WHERE THE LAND IS SITUATED AT 16 KM FROM CO IMBATORE RAILWAY STATION AS PER COIMBATORE CORPORATION LIMIT PLAN. THE APPEL LANT ALSO FILED A CERTIFICATE FROM THE TAHSILDAR [NORTH COIMBATORE] D ATED 30.04.2008 WHICH STATES THAT THE SAID LAND BEARING SURVEY NOS. 574/2 , 575/2, 576/2, 577, 578/1, 579/1 AND 582/1 IS SITUATED AT 8.4 KMSFROM T HE COIMBATORE CORPORATION LIMITS. THE LEARNED AUTHORIZED REPRESEN TATIVE SUBMITTED THAT THIS CERTIFICATE WAS OBTAINED BEFORE THE APPELLANT FILED THE RETURN OF INCOME IN ORDER TO BE CLEAR WHETHER THE INCOME ON THE SALE OF AGRICULTURAL LAND WAS TAXABLE OR NOT. 11. THE APPELLANT ALSO FILED A CERTIFICATE DATED 3 1.08.2012 ISSUED BY THE SUB INSPECTOR OF SURVEYS, COIMBATORE CORPORATION - NORT H ZONE, COIMBATORE. IN THIS CERTIFICATE IT WAS MENTIONED THAT THE DISTANCE BY ROAD FROM THE LIMIT OF COIMBATORE CORPORATION (AS EXISTED IN THE YEAR 2007 -2008) TILL THE LOCATION OF AGRICULTURAL LAND IN SF NOS.574-579 AND 582 AT K EERANATHAM PUDUPPALAYAM VILLAGE IS 9.1 KMS. THE LAND MARK WHEN VISITED WAS SHOWN AS NEAR GOWTHAM COMPLEX, AISHWARYA BAKERY AND JAYAM MEDICALS. THE SUB INSPECTOR OF SURVEYS, COIMBATORE CORPORATION - NORTH ZONE IN HIS CERTIFICATE DATED 08.02.2013 [WHICH WAS SUBMITTED T O THE ASSESSING OFFICER] INCLUDED A MAP SHOWING THE PLACE OF CORPORATION LIM IT END. IT WAS ITA NO.2716/MDS/14 6 MENTIONED IN THE CERTIFICATE THAT THE PLACE OF CORP ORATION LIMIT WOULD BE ONLY FROM L.G.B. NAGAR PIRIVU, GOWTHAM COMPLEX, AIS HWARYA BAKERY AND JAYAM MEDICALS [NEAR RAMAKRISHNA MILLS] AT SATHY RO AD, GANAPATHY VILLAGE. THE INSPECTOR OF INCOME TAX, % ACIT, CIRCL E-II, COIMBATORE, IN HER REPORT DATED 08.02.2013 SUBMITTED THAT AS PER THE D ETAILS GATHERED IT WAS ASCERTAINED THAT THE LIMIT FOR THE COIMBATORE CORPO RATION ENDS NEAR A BAKERY CALLED THE 'CITY BAKERY' ON THE COIMBATORE - KEERAN ATHAM ROAD DURING THE FINANCIAL YEAR 2007-08. KEEPING THIS AS THE STA RTING POINT FOR MEASURING THE DISTANCE TO THE SITE IT WAS FOUND TO BE 7.9 KMS . THE ASSESSING OFFICER AFTER EXAMINING THE DETAILS WROTE'A LETTER TO THE I NSPECTOR OR SURVEY AND LAND RECORDS MAINTENANCE, COIMBATORE (NORTH) COLLECTORAT E COMPOUND, COIMBATORE ON 07.03.2013 ASKING THE INSPECTOR OF SU RVEY 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 A T KEERANAM PUDUPPALAYAM VILLAGE TO THE NEAREST COIMBATORE CORP ORATION LIMIT AS PER THE RECORDS FOR THE FINANCIAL YEAR 2007-08. 12. AS SEEN FROM THE RECORDS ON 08.03.2013, A LETT ER WAS ADDRESSED BY THE ACIT, CIRCLE-II, COIMBATORE TO THE ITA (INVESTIGATI ON), 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 K MS 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' WH ICH IS SITUATED IN THE CORNER OF ATHIPALAYAM ROAD WHICH LEADS TO KEERANATH AM PUDUPPALAYAM VILLAGE [BEARING SURVEY NOS. 574/2, 575/2, 576/2, 5 77, 578/1, 579/1 AND 582/1] VIA CHINNAVEDAMPATTI (WHERE PROPERTY OF SRI PRABHAKARAN IS SITUATED) AND RABINDRANATH TAGORE ROAD. THE LETTER ALSO STATE S THAT THE RABINDRANATH TAGORE ROAD IS THE CORPORATION LIMIT DURING THE PER IOD IN WHICH SHRI PRABHAKARAN HAD DISPOSED OFF HIS HUF PROPERTY. THER EFORE, 'CITY BAKERY' WAS TAKEN AS THE STARTING POINT FOR MEASURING THE D ISTANCE OF SHRI PRABHAKARAN'S HUF PROPERTY FROM THE COIMBATORE CORP ORATION LIMIT. THE ITA (INV.) ALSO STATED THAT THE DISTANCE OF SHRI PR ABHAKARAN'S HUF PROPERTY WAS 7.5 KMS FROM THE COIMBATORE CORPORATION LIMIT. ONE SIDE OF RABINDRANATH TAGORE ROAD IS CORPORATION LIMIT AND T HE OTHER SIDE IS NOT COMING UNDER CORPORATION LIMIT EARLIER. THE WIDTH O F THE ROAD IS ONLY 10 METER. AT PRESENT BOTH THE SIDES ARE WITHIN THE COR PORATION LIMIT. A PHOTOCOPY OF THE MUNICIPAL PASSBOOK AND PROPERTY TA X RECEIPTS ISSUED BY THE COIMBATORE CORPORATION FOR THE PERIOD FROM 2001 -02 TO 2011-12 TO A PROPERTY BELONGING TO SHRI P.G. MAHALINGAM AND SHRI P. MANI WHICH IS SITUATED ON RABINDRANATH TAGORE ROAD, ADJACENTLY OP POSITE TO THE 'CITY BAKERY' IS ENCLOSED AS PROOF/EVIDENCE OF CORPORATIO N' LIMIT. THE DISTANCE BETWEEN THESE 'CITY BAKERY' AND THE PROPERTY OF SHR I P.G. MAHALINGAM AND' SHRI P. MANI IS LESS THAN 100 METERS. THEREFORE, TH E ITO (INV.) SUBMITTED THAT THE CAPITAL GAINS EXEMPTION CLAIMED BY THE ASS ESSEE IS INELIGIBLE. ITA NO.2716/MDS/14 7 13. ON AN EXAMINATION OF THE ITO (INV.) LETTER TO THE ASSESSING OFFICER, IT IS VERY CLEAR THAT THE ITO (INV.) DID NOT SPECIFY THE BASIS / EVIDENCE ON WHICH HE CAME TO THE CONCLUSION THAT RABINDRANATH TAGORE ROAD IS THE CORPORATION LIMIT DURING THE PERIOD IN WHICH SHRI P RABHAKARAN HAD DISPOSED-OFF THE PROPERTY. HENCE TAKING 'CITY BAKER Y' AS THE STARTING POINT FOR MEASURING THE DISTANCE IS NOT ON SOUND REASONIN G OF ANY EVIDENCE FROM CORPORATION AUTHORITIES. THE MUNICIPAL TAX PASSBOOK AND PROPERTY TAX RECEIPT DID NOT INDICATE THE CORPORATION LIMIT TO M EASURE THE DISTANCE FROM THE CORPORATION LIMIT TO THE LANDS OF THE APPELLANT . THE ASSESSING OFFICER AGAIN WROTE A LETTER DATED 15.03.2013, TO THE INSPE CTOR OF SURVEY AFTER RECEIVING A CERTIFICATE FROM THE INSPECTOR OF SURVE Y AND LAND RECORDS MAINTENANCE. IN THE CERTIFICATE DATED 15.03.2013, T HE INSPECTOR OF SURVEY AND LAND RECORDS (MAINTENANCE), COIMBATORE SUBMITTE D THAT 'AS REQUIRED BY YOUR END, I HAVE VISITED THE AGRICULTURAL LAND W ITH SURVEY NOS. 574/2, 575/2, 576/2, 577, 578/1, 579/1 AND 582/1 IN KEERAN ANTHAM PANCHAYAT, KEERANAM PUDUPPALAYAM VILLAGE, COIMBATORE DISTRICT TO MEASURE THE SHORTEST DISTANCE TO THE SAID LAND FROM THE COIMBAT ORE CORPORATION LIMIT (2007-2008). FOR THIS PURPOSE, I HAVE MEASURED THE DISTANCE FROM THE COIMBATORE CORPORATION LIMIT AT SATHY ROAD, COIMBAT ORE, 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 CO IMBATORE CORPORATION LIMIT PLAN AS WAS IN THE YEAR 2007-2008. FROM THAT POINT AS MENTIONED ABOVE BY THE SHORTEST ROAD ROUTE TO THE SAID AGRICU LTURAL LAND THE DISTANCE MEASURES AT 9.13 KMS'. 14. BASING ON THE CERTIFICATE ISSUED BY THE INSPEC TOR OF SURVEY AND LAND RECORDS (MAINTENANCE), COIMBATORE (NORTH), COLLECTO RATE COMPOUND, COIMBATORE, THE ASSESSING OFFICER ISSUED A LETTER D ATED 15.03.2013 ASKING HIM TO CLARIFY THE EXACT PLACE FROM WHICH THE DISTA NCE IS TO BE MEASURED. IN THIS LETTER ADDRESSED TO THE INSPECTOR OF SURVEY AN D LAND RECORDS (MAINTENANCE), COIMBATORE (NORTH), IT WAS ALSO MENT IONED THAT THE INSPECTOR OF INCOME TAX MADE ENQUIRY AT CHINNAVEDAMPATTI PANC HAYAT AND THE CORPORATION LIMIT ENDS AT GOPALAKRISHNA MILLS / CIT Y BAKERY. IN REPLY TO THE LETTER OF THE ASSESSING OFFICER, THE INSPECTOR OF S URVEY AND LAND RECORDS (MAINTENANCE), COIMBATORE (NORTH), CLARIFIED THAT T HE EXACT POINT WILL BE ONLY AT (LANDMARK) BEYOND RAMAKRISHNA MILLS, AT LGB NAGA R PIRIVU - GOWTHAM TOWERS, AISHWARYA BAKERY AND JAYAM MEDICALS) AND NO T FROM GOPALAKRISHNA MILLS / CITY BAKERY OR ANY OTHER PLAC E AS PER THE COIMBATORE CORPORATION LIMIT PLAN AS WAS IN THE YEAR 2007-2008 . 15. AS SEEN FROM THE ASSESSMENT ORDER, THE ASSESSI NG OFFICER HAS CONSIDERED THE REPORT OF THE INVESTIGATION WING AS ALSO THE REPORT OF THE ITA NO.2716/MDS/14 8 INSPECTOR OF SURVEY AND LAND RECORDS (MAINTENANCE), COIMBATORE (NORTH) AND ALSO THE CERTIFICATE ISSUED BY THE TAHSILDAR, C OIMBATORE (NORTH) AND HAS TAKEN A DECISION TO BRING TO TAX THE CONSIDERATION RECEIVED ON SALE OF AGRICULTURAL LAND BASED ON THE DEPARTMENTAL REPORT. THE ASSESSING OFFICER IN THE ORDER STATED THAT 'SO THE DECISION WAS TAKEN IN FAVOUR OF REVENUE BASED ON THE DEPARTMENTAL REPORT AND THE CONSIDERATION RE CEIVED ON SALE OF AGRICULTURAL LAND BY THE ASSESSEE ATTRACTS CAPITAL GAINS AND THE ASSESSMENT IS COMPLETED ACCORDINGLY'. AS SEEN FROM THE ITO (IN V.) REPORT AND THE INSPECTOR'S REPORT, THE OUTER LIMIT OF MUNICIPAL CO RPORATION WAS CONSIDERED AS 'CITY BAKERY' FROM WHICH THE DISTANCE WAS MEASUR ED. THE ITO (INV.) LETTER DOES NOT SPECIFY THE BASIS ON WHICH RABINDRA NATH TAGORE ROAD WAS TAKEN AS THE CORPORATION LIMIT BY HIM FOR MEASURING THE DISTANCE OF MUNICIPAL LIMITS. IT IS NOT CLEAR HOW THE MUNICIPAL TAX PASSBOOK AND PROPERTY TAX RECEIPTS ISSUED BY COIMBATORE CORPORAT ION TO A PROPERTY BELONGING TO SHRI P. G. MAHALINGAM AND SHRI P. MANI (SITUATED AT RABINDRANATH TAGORE ROAD) CAN BE CONSIDERED AS THE PROOF/ EVIDENCE OF CORPORATION LIMITS. 16. AS SEEN FROM THE RECORDS, THE ASSESSING OFFICE R HAS WRITTEN TO THE INSPECTOR OF SURVEY AND LAND RECORDS (MAINTENANCE) REGARDING CLARIFICATION ON THE ENQUIRIES MADE BY THE INSPECTOR OF INCOME TA X AT CHINNAVEDAMPATTI PANCHAYAT TO BE INFORMED THAT THE CORPORATION LIMIT ENDS AT GOPALAKRISHNA MILLS / CITY BAKERY. THE INSPECTOR OF SURVEY AND LA ND RECORDS (MAINTENANCE) WHO IS THE AUTHORITY HAS CLARIFIED TH AT THE EXACT STARTING POINT WILL BE ONLY AT LGB NAGAR PIRIVU - GOWTHAM TOWERS, AISHWARYA. BAKERY AND JAYAM MEDICALS AND NOT FROM CITY BAKERY OR ANY OTHE R PLACE, AS PER COIMBATORE CORPORATION CITY LIMITS IN THE YEAR 2007 -2008. SINCE IT IS THE INFORMATION RECEIVED BY THE ASSESSING OFFICE-R FROM THE CONCERNED DEPARTMENT, THE ASSESSING OFFICER CANNOT BRUSH ASID E THE INFORMATION RECEIVED FROM THE INSPECTOR OF SURVEY AND LAND RECO RDS (MAINTENANCE). THE INSPECTOR OF INCOME TAX HAS ONLY MADE ENQUIRY W ITH THE CHINNAVEQAMPATTI PANCHAYAT AND HAS COME TO THE CONC LUSION THAT THE CORPORATION LIMIT ENDS AT GOPALAKRISHNA MILL / CITY BAKERY. THERE IS NO AUTHENTICATED MAP OR INFORMATION TO THIS EXTENT. TH E REPORT OF THE ITO (INV.) AS DISCUSSED EARLIER CANNOT BE CONSIDERED WITHOUT P ROPER AUTHENTICATION FROM THE CONCERNED AUTHORITY REGARDING THE MUNICIPA L 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 A GAINST THE CLARIFICATION BY VARIOUS STATE GOVERNMENT AUTHORITIES, (THAT TOO, INDEPENDENTLY VERIFIED BY THE ASSESSING OFFICER) CANNOT BE ACCEPTED RELYING O N THE CASE OF CIT VS LALSINGH AND OTHER (REPORTED IN 325 ITR 588) - PUNJ AB & HARYANA HIGH COURT. SINCE IT IS VERY CLEARLY PROVED THAT THE LAN DS ARE AGRICULTURAL LAND SITUATED BEYOND 8 KMS FROM THE CORPORATION MUNICIPA L LIMITS, THE INCOME ITA NO.2716/MDS/14 9 ON SALE OF THE AGRICULTURAL LAND IS EXEMPT FROM TAX ATION. THE ASSESSING OFFICER IS DIRECTED TO DELETE THE ADDITION. THE GRO UNDS OF APPEAL ARE ALLOWED. 4. BEFORE US THE LD. D.R. SUBMITTED THAT THE INVES TIGATION WING OF THE REVENUE HAD FORWARDED A REPORT IN WHICH THEY HA D CLEARLY STATED THAT THE LAND IS LOCATED WITHIN 8 KMS FROM CITY BAK ERY WHICH IS NOT MORE THAN 100 METERS FROM THE CORPORATION LIMIT OF THE COIMBATORE. IT WAS THEREFORE SUBMITTED THAT THE FINDING OF THE REV ENUE WILL SUPERSEDE THE CERTIFICATES GIVEN BY THE STATE GOVER NMENT DEPARTMENTS AND THE ISSUE HAS TO BE DECIDED ON THAT BASIS. THE LD. A.R. RELIED ON THE ORDER OF THE LD. CIT (A) AND ARG UED IN SUPPORT OF THE SAME. 5. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY PE RUSED THE MATERIALS AVAILABLE ON RECORD. THE FOLLOWING REPOR TS SUBMITTED BY THE RELEVANT AUTHORITIES THAT ARE FORMING PART OF THE P APER BOOK PRODUCED BEFORE US AND ALSO FORMING PART OF THE PAPER BOOK P RODUCED BEFORE THE REVENUE AUTHORITIES ARE EXTRACTED HEREIN BELOW FOR REFERENCE:- ITA NO.2716/MDS/14 10 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, CONTAI NING 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 HEC. 576/2 0.09.0 577 0.66.5 578/1 0.62.5 579/1 1.57.0 582/1 0.51.0 ------------- TOTAL : 4.02.0 HEC ------------- SIGNED TEHSILDAR DT 30.4.08 COIMBATORE (NORTH) ROUND SEAL OF TEHSILDAR/ TALUK JUDGE. COIMBATORE RECIPIENT, SHORT SIGN OF CLERK DATE: 30.4.2008 MR. K. PRABAKARAN, 291, AVARAM PALAYAM ROAD, ITA NO.2716/MDS/14 11 SIDHA PUDUR, POST, COIMBATORE 641 044. TRANSLATED FROM TAMIL TO ENGLISH INSPECTOR OF SURVEY AND LAND RECORDS MAINTANCE, COIMBATORE (NORTH) COLLECTORATE COMPOUND, COIMBATORE 641 018. DATED : 20.12.2010. C/ OFFICE REF: L. DIS.1189/10. CERTIFICATE THIS IS TO CERTIFIED THAT THE AGRICULTURAL LAND I N KEERANATHAN PANCHAYAT, COIMBATORE DISTRICT BEARING SURVEY NUMBERS 574/2,57 5/ 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 NEAR BY COIMBATORE CO RPORATION LIMIT ENDS ON SATHY ROAD (LAND MARK WHEN VISITED: NEAR GOWTHAM COMPLEX, AISH WARYA BAKERY, AND JAYAM MEDICALS) TAKEN BY THE APPROACHABLE SHORTEST ROAD R OUTE FROM BOUNDARY OF COIMBATORE CORPORATION LIMITS AT SATHY ROAD VIA SIVANANDA PURA M, SARAVANAMPATTY, KEERANATHAM VILLAGE TO KEERANATHAM PUDUPPALAYAM VILLAGE TILL TH E LAND IS SITUATED AND 16 KM FROM COIMBATORE RAILWAY STATION AS PER COIMBATORE CORPOR ATION LIMIT PLAN. INSPECTOR OF SURVEY AND LAND RECORDS MAINTENANCE COIMBATORE (NORTH) COLLECTORATE COMPOUND COIMBATORE. TO MR. K. PRABAKARAN, 291, AVARAM PALAYAM ROAD, SIDHAPUDUR, POST, COIMBATORE 641 044. ITA NO.2716/MDS/14 12 31.08.2012 SUB INSPECTOR OF SURVEYS, COIMBATORE CORPORATION NORTH ZONE, COIMBATORE. C/OFFICE REF: YOUR LETTER DATED 06.07.2012 SUB: ISSUE OF DISTANCE CERTIFICATE REG. CERTIFICATE I HAVE BEEN REQUESTED TO CERTIFY THE DISTANCE BY R OAD FROM THE LIMIT OF COIMBATORE CORPORATION (AS EXISTED IN THE YEAR 2007-2008) TILL THE LOCATION OF AGRICULTURAL LAND IN SF NOS. 574-579 AND 582 AT KEERANATHAM PUDUPPALAYAM VI LLAGE BY MR. K. PRABAKARAN RESIDING AT 291, AVARAMPALAYAM ROAD, SIDHAPUDUR, CO IMBATORE 641 044. IN THIS REGARD, I HEREBY CERTIFY THAT I HAVE PERSO NALLY VISITED AND FOUND THE SHORTEST DISTANCE FROM THE NEAR BY COIMBATORE CORPORATION LI MITS ( AS WAS IN THE YEAR 2008) AT SATHY ROAD (LAND MARK WHEN VISITED: NEAR GOWTHAM CO MPLEX, AISHWARYA BAKERY, AND JAYAM MEDICALS) TO THE AGRICULTURAL LAND IN SF NUMB ERS 574/2,575/ 2, 576/2, 577, 578/1, 579/1 AND 582/1 AT KEERANATHAM PUDUPPALAYAM VILLAGE IS 9.1 KMS MEASURED BY THE SHORTEST APPROACHABLE ROAD ROUTE TAKEN FROM BOUNDAR Y OF COIMBATORE CORPORATION LIMIT VIA. SIVANANDA PURAM, SARAVANAMPATTY, KEERANATHAM V ILLGE 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 ITA NO.2716/MDS/14 13 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 /1 2-13 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 VILLAG E, 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 STARTING PO INT (LAND MARK: BEYOND RAMAKRISHNA MILLS AT LGB NAGAR PIRIVU- GOWTHAM TOWER, AISWARYA BAKERY AND JAYAM MEDICAL) TO MEASURE THE DISTANCE AS REQUIRED TO THE SAID LAND A S 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 DISTAN CE MEASURES AT 9.13 KM. INSPECTOR OF SURVEY AND LAND RECORDS. (MAINTENANCE) COIMBATORE. TO ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE II, COIMBATORE. ITA NO.2716/MDS/14 14 6. FROM THE ABOVE IT IS CRYSTAL CLEAR THAT THE SUR VEY DEPARTMENT OF THE STATE GOVERNMENT AND THE THASILDAR OF THE RELEV ANT ZONE HAVE CONSISTENTLY CERTIFIED THAT THE LAND IS SITUATED BE YOND 8 KMS FROM THE CORPORATION LIMIT OF COIMBATORE. THE GENUINENESS O F THE LETTERS FROM THE STATE GOVERNMENT AUTHORITIES IS ALSO NOT IN DIS PUTE. MOREOVER, THE LD. CIT (A) IN HIS DETAILED ORDER, THE RELEVANT POR TION OF WHICH IS EXTRACTED HEREIN ABOVE, HAS HELD THAT THE LAND SOLD BY THE ASSESSEE IS AN AGRICULTURAL LAND AND SITUATED BEYOND 8 KMS F ROM THE CORPORATION MUNICIPAL LIMIT, THEREBY THE CAPITAL GA IN ARISING FROM THE SALE OF THE AFORESAID LAND IS EXEMPT FROM CAPITAL G AIN TAX AS PER THE PROVISIONS OF THE ACT. IN THIS SITUATION WE DO NOT HAVE ANY HESITATION TO CONFIRM THE ORDER OF THE LD. CIT (A). 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED ON 22 ND JUNE, 2015 AT CHENNAI. SD/- SD/- (V. DURGA RAO) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 22 ND JUNE, 2015. K S SUNDARAM. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE