December 2022
43. Where the land of the assessee was situated beyond 5 km from the nearest Municipal Corporation, as per Notification No. SO 9447, dated 6th January, 1994 issued for Chenglepet Municipality, the land was agricultural land and hence out of ambit of ‘capital asset’ as defined u/s 2(14).
Mohideen Sharif Inayathulla Sharif vs. Income-tax officer
[2022] 95 ITR(T) 345 (Chennai - Trib.)
ITA No.: 658 (Chny) of 2020
A.Y.: 2011-12
Date: 7th March, 2022
Sections: 2(14), 45
43. Where the land of the assessee was situated beyond 5 km from the nearest Municipal Corporation, as per Notification No. SO 9447, dated 6th January, 1994 issued for Chenglepet Municipality, the land was agricultural land and hence out of ambit of ‘capital asset’ as defined u/s 2(14).
FACTS
The assessee sold certain land in his village and did not offer any capital gains on the sale on the grounds that it was an agricultural land. A copy of Google maps was submitted by the assesse to establish that land was located beyond 5 km from the nearest Municipal Corporation. Further, the certificate issued by Village Administrative Officer was furnished by the assessee in support of his claim.
Reliance was also placed by the assessee on the notification No. SO 9447 dated 6th January, 1994, wherein it was stated that the distance for Chenglepet Municipality was 5 Km.
The AO contended that the definition of agricultural land was applicable w.e.f. 1st April, 2014 and prior to the amendment the distance was 8 km and not 5 km from Municipal Corporation. Accordingly, long term capital gains were computed by the AO.
Aggrieved, the assessee filed an appeal before the CIT(A), however, the appeal of the a
