AO measured Municipal Limit as per Google Map Location: ITAT deletes Capital Gain Addition based on VAO Certificate [Read Order]

The Income Tax Appellate Tribunal (ITAT), while deleting an addition towards capital gain made by the Assessing Officer based on google map, held that the municipal limit as per the certificate of the Village Administration Officer says that the assessee’s land is situated beyond 5 Kms and therefore, the land shall be treated as agricultural land.

The assessee claimed that the assessment of capital gain at Rs.132.89 Lacs as stated to be arising out of sale of certain agricultural land and therefore, the income is exempted from income tax.

On appeal, the CIT(A) held that as per Google map, there was a road, which showed distance of 4.7 Km, the land was capital asset and the stand of Ld. AO in computing the gains was to be upheld.

The Tribunal bench comprising Shri V. Durga Rao, Judicial Member and Shri Manoj Kumar Aggarwal, AM held that “the exact location of the land is also certified in various certificates issued by Village Administrative Officer (VAO), the copies of which have been placed on record. Quite clearly, the assessee’s land is situated beyond 5 Kms since notification, as referred to by the assessee during appellate proceedings, has been accepted by Ld. CIT(A) and according to notification, the relevant area is 5 Kms. and not 8 Kms. Therefore, the assessee’s land could not be considered as non-agricultural land and the same would be out of ambit of ‘capital asset’ as defined in Sec.2(14). The fact that land continues to be agricultural land in revenue record could also not be controverted before us. This being the case, the assessment of capital gains, would have no legs to stands. By deleting the impugned additions, we allow the appeal.”

To Read the full text of the Order CLICK HERE

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