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TMI Blog2020 (11) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... that having regard to population, concentration of industries need for proper planning of the area and other factors, the Central Government may by general or special order declare to be an area to be urban area for the purposes of sub-Section (1) of Section 54G of the Act. In exercise of powers under the aforesaid provision, the Central Government has issued a Notification dated 27.04.2006 and has declared Anekal where the factory of the assessee is situated to be an urban area for the purposes of sub-Section (1) of Section 54G of the Act. However, from perusal of the Notification no inference can be drawn that the same has any retrospective operation. The Notification comes into force on the date of its publication in the Official Gazett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ignoring the contemporaneous notification No.9447 dated 6.1.1994? (iii) Whether the tribunal was right in classifying Bangalore as a non-urban area for the purposes of Section 54G when it was previously categorized as an urban area until 1990? (iv) Whether the tribunal was right in finding that an urban area such as Bangalore could be classified as a non-urban area for the purpose of Section 54G from 1990 and then once again be classified as an urban area from 27.04.2006? 2. Facts leading to filing of this appeal briefly stated are that the assessee is a private limited company that had its factory at on plot No.155A, Bommasandra Industrial Area, Anekal, Bangalore. Thereafter, the assessee decided to shift its operations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer in an appeal before the Commissioner of Income Tax (Appeals) who by an order dated 26.08.2010 affirmed the order passed by the Assessing Officer. The assessee thereupon filed an appeal before the tribunal. The tribunal vide order dated 31.10.2011 once again remitted the matter to the Assessing Officer. The Assessing Officer maintained its previous order vide order dated 24.12.2012. The aforesaid order was upheld in appeal by the Commissioner of Income Tax (Appeals) vide order dated 30.08.2013. The assessee challenged the aforesaid order in an appeal before the tribunal. The tribunal vide order dated 27.02.2015 affirmed the order passed by the Commissioner of Income Tax (Appeals). In the aforesaid factual background, this appeal has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has shifted from non urban area and since, the original asset itself was not located in urban area, the benefit under Section 54G of the Act is not allowable. It is also urged that the Notification dated 27.04.2006 cannot be applied with retrospective effect. It is also argued that intention of enacting Section 54G is to promote decongestion of urban areas and to balance the regional growth and with the aforesaid object the legislature by enacting Section 54G exempted capital gains on transfer of plant, machinery, land, building etc. used for the purposes of business of industrial undertaking. It is also contended that Section 54G envisages shifting of industrial undertaking from an urban area to a non urban area. It is also pointed out t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s situated to be an urban area for the purposes of sub-Section (1) of Section 54G of the Act. However, from perusal of the Notification no inference can be drawn that the same has any retrospective operation. The Notification comes into force on the date of its publication in the Official Gazette. 7. Section 280ZA of the Act was omitted by Finance Act, 1987 with effect from 01.04.1988. The Central Board of Direct Taxes (CBDT) has issued a Notification under Section 280Y(d) vide Notification dated 22.09.1967, by which Bangalore Corporation is declared as urban area for the purposes of Chapter XXIIB of the Act. However, the aforesaid Notification is applicable for Tax Credit Certificates for shifting of industrial undertakings from urban ..... X X X X Extracts X X X X X X X X Extracts X X X X
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