2023 (7) TMI 747 - AT - Income Tax

Nature of land sold - Assessability of long term capital gains on sale of Agricultural Land - determination of municipal limit - Commissioner justification in relying on the data obtained from Google - whether the land sold by the assessee is within municipal limits of Vizianagaram or not - HELD THAT - Since there is ambiguity in the certificates issued by both the revenue as well as the municipal authorities, we remit the matter back to the file of the AO to re-ascertain whether the land is within 8 kilometers of the municipal limits or not and pass appropriate orders accordingly. Appeal of the assessee is allowed for statistical purpose.

Summary

Issues involved:
The judgment involves the determination of whether the land sold by the assessee is within the municipal limits of Vizianagaram or not.

Issue 1: Assessability of long term capital gains on sale of Agricultural Land
The assessee filed an appeal against the order of the Commissioner of Income Tax (Appeals) regarding the assessability of long term capital gains on the sale of agricultural land. The Assessing Officer had observed that the land was hardly 1KM from the municipal limits, but the assessee voluntarily agreed to pay tax on capital gains. The Tribunal remitted the matter back to the AO to re-ascertain whether the land is within 8 kilometers of the municipal limits or not.

Issue 2: Disputed issue consideration
The grounds of appeal raised by the assessee included the failure of the authorities to properly consider various certificates and reports, such as the certificate issued by the Tahsildar confirming the land as agricultural, and the reliance on data obtained from Google without giving the appellant an opportunity to rebut the claim. The Tribunal emphasized the need for clarity regarding the location of the disputed land and directed the AO to pass appropriate orders after re-evaluating the matter.

Issue 3: Opportunity for being heard
The appellant contended that they were not given an opportunity to verify and present facts before the AO, and requested the order passed by the CIT(A) to be set aside to afford them a chance to substantiate their claim. The Tribunal acknowledged the importance of providing adequate opportunity for the appellant to present their case and directed the matter to be reconsidered by the assessing officer.

The Tribunal, after hearing both parties and reviewing the evidence, found ambiguity in the certificates issued by the revenue and municipal authorities regarding the location of the disputed land. Consequently, the Tribunal remitted the matter back to the assessing officer for reevaluation to determine whether the land is within 8 kilometers of the municipal limits of Vizianagaram. The appeal of the assessee was allowed for statistical purposes.