THE ITO, WARD - 4(1), Visakhapatnam V. Sri Vytla Nageswara Rao, Visakhapatnam

ITA 61/VIZ/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2157 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 11 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 08-12-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 05-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D KOMALI KRISHNA
• Section: 143(3)

Judgement Text

ITA NO.61/VIZAG/2013 V. NAGESWARA RAO, VISAKHAPATNAM 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , ' BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./ I.T.A.NO.61/VIZAG/2013 ( / ASSESSMENT YEAR : 2008-09) ITO WARD-4(1) VISAKHAPATNAM VS. V. NAGESWARA RAO VISAKHAPATNAM [ PAN: ABIPV 5633M ] ( ) / APPELLANT) ( *+) / RESPONDENT ) / APPELLANT BY : SMT. D. KOMALI KRISHNA, DR #$ / RESPONDENT BY : SHRI G.V.N. HARI, AR ( / DATE OF HEARING : 07. 01.2016 ( / DATE OF PRONOUNCEMENT : 22.01.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER OF THE CIT(A), VISAKHAPATNAM DATED 23.11.2012 FOR THE ASSE SSMENT YEAR 2008-09. ITA NO.61/VIZAG/2013 V. NAGESWARA RAO, VISAKHAPATNAM 2 2. THE ASSESSEE FILED A RETURN OF INCOME ADMITTING TOTAL INCOME OF RS.4,61,286/- AND AGRICULTURAL INCOME OF RS.2,20,00 0/- ON 8.10.2008. THE RETURN FILED BY THE ASSESSEE WAS PROCESSED INIT IALLY U/S 143(1) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER CALLED AS THE AC T). SUBSEQUENTLY, THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY. AFTER DUE PROCESS ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT. DU RING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A.O. HAS NOTICED THAT T HE ASSESSEE HAS SOLD 3 ACRES OF THE LAND, IN RAVADA VILLAGE, PARAVA DA MANDALAM, VISAKHAPATNAM DISTRICT, ON 16.4.2007 FOR A CONSIDER ATION OF RS.28,50,000/-. THE A.O. HAS NOTICED THAT THE ABOV E LAND WAS SITUATED WITHIN 8 KMS. FROM GREATER VISAKHAPATNAM MUNICIPAL CORPORATION LIMITS (GVMC) AND A.O. CAME TO A CONCLUSION THAT THE ABOVE LAND IS AN ASSET WITHIN THE MEANING OF SECTION 2(14)(III)(B) OF THE ACT. ACCORDINGLY, HE HAS COMPUTED THE SHORT TERM CAPITAL GAIN AT RS.24,0 6,900/-. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CI T(A). THE LD. CIT(A) BY FOLLOWING THE COORDINATE BENCH OF THE DECISION I N CASE OF SMT. NEERAJA VS. ACIT ITA NO.424 OF 2009, DELETED THE AD DITION MADE BY THE A.O. REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 3. THE LD. D.R. HAS STRONGLY SUPPORTED THE ORDER PA SSED BY THE A.O. ITA NO.61/VIZAG/2013 V. NAGESWARA RAO, VISAKHAPATNAM 3 4. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSES SEE HAS SUBMITTED THAT AS PER THE CERTIFICATE ISSUED BY THE TAHSILDAR , THE DISPUTED LAND LOCATED BEYOND THE DISTANCE OF 8 KMS. BY ROAD FROM THE GVMC LIMITS AND THEREFORE IT DOES NOT COME WITHIN THE PURVIEW OF CA PITAL ASSET AS PER SECTION 2(14)(III)(B) OF THE ACT AND SUBMITTED THAT THE LAND IN DISPUTE IS AN AGRICULTURAL LAND AND STRONGLY SUPPORTED THE ORD ER PASSED BY THE CIT(A). 5. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE RECOR DS AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE O NLY ISSUE INVOLVED IN THIS APPEAL IS WHETHER THE LAND SOLD BY THE ASSESSE E IS WITHIN THE 8 KMS. FROM THE GREATER VISAKHAPATNAM MUNICIPAL CORPORATIO N LIMITS OR BEYOND 8 KMS. LIMITS. AS PER THE CERTIFICATE ISSUED BY TH E TAHSILDAR PARAVADA APPROXIMATELY THE DISPUTED LAND IS LOCATED 8 KMS. , BY ROAD FROM THE GVMC LIMITS. AS PER THE REPORT OF THE INSPECTOR OF THE INCOME TAX, THE DISTANCE IS 7.9 KMS. UNDER THESE ABOVE FACTS AND C IRCUMSTANCES OF THE CASE, WE ARE OF THE OPINION THAT BENEFIT OF DOUBT I .E. WHETHER WITHIN 8 KMS. OR BEYOND 8KMS. SHOULD GO IN FAVOUR OF THE ASS ESSEE. IN VIEW OF THE ABOVE, THIS APPEAL FILED BY THE REVENUE IS DISM ISSED. ITA NO.61/VIZAG/2013 V. NAGESWARA RAO, VISAKHAPATNAM 4 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 22 ND JAN16. SD/- SD/- ( . ) (. ) ( G. MANJUNATHA) ( V. DURGA RAO ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER , /VISAKHAPATNAM: 0 / DATED : 22.01.2016 VG/SPS # 2, 3,/ COPY OF THE ORDER FORWARDED TO :- 1. / THE APPELLANT THE ITO WARD-4(1), VISAKHAPATNAM 2. #$ / THE RESPONDENT SRI VYTLA NAGESWARA RAO, PROP: M/S. MANIKANTA WINES, 36-37-20, KAPPARADA, KANCHERAPALAM, VISAKHAP ATNAM 3. 5 / THE CIT, VISAKHAPATNAM 4. 5 () / THE CIT(A), VISAKHAPATNAM 5. , # :, ( : , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // >? : ( SR.PRIVATE SECRETARY ) ( : , , / ITAT, VISAKHAPATNAM