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TMI Blog2019 (1) TMI 1845X X X X Extracts X X X X X X X X Extracts X X X X ..... ,09,77,775/-, in assessment order dt. 05/12/2011, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short 'the Act'). Heard both the parties reiterating their respective stands against and in support of the impugned LTCG addition. Case file perused. 2. We find at the outset that the CIT(A)'s detailed discussion affirming the Assessing Officer's action holding the assessee's land to be a capital asset giving rise to the impugned LTCG on transfer reads as under:- 3. We have heard rival contentions. Relevant case records comprising of the erstwhile Andhra Pradesh state government notification dt. 16/04/2017 merging 8 gram panchayats in the Greater Hyderabad Municipal Corporation (GHMC), copy of the city planner's letter dt. 22/03/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4)(III)(B) of the Act as applicable in the impugned Assessment Year. The taxpayer stand throughout is that its land is not a capital asset since it is situated beyond 8 Kms. distance of any municipality whereas the Revenue's case is that Mamidipally gram panchayat is adjacent to the GHMC limits. And also that is happens to be a hub of major economic activity including aviation sector. We find no merit in the latters stand based on the lower authority's respective findings. We make it clear first of all that there is no rebuttal coming from the department that the land in question has ever been converted from agricultural to non-agricultural use at any point of time before the sale in question. The state government's revenue records strongly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his is not the Revenue's case that the said amendment carries any retrospective operation. Meaning thereby that 8 Kms distance condition has to be measured in terms of the road only as held by the hon'ble Delhi High Court in the case of CIT vs. Vijay Singh Kadan [2015] 378 ITR 71 (Delhi). The Revenue fails to dispute that neither of the lower authorities has quoted any surface link between the assessee's land and the nearest municipality namely GHMC so as to treat its lands as capital asset giving rise to long term capital gains on transfer. We therefore accept the assessee's sole substantive ground and direct the Assessing Officer to delete the impugned long term capital gains addition of Rs. 3,09,77,775/-. 5. This assessee's appeal is al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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