Amendment to Section 2(14)(III)(b) relating to measurement of distance aerially to apply prospectively

1 comments Friday, October 9, 2015

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

CENTRAL BOARD OF DIRECT TAXES

NEW DELHI

  

 

Circular No. 17/2015

Dated : 06th October, 2015

 

  

SUBJECT : MEASUREMENT OF THE DISTANCE FOR THE PURPOSE OF SECTION 2(14)(III)(B) OF THE INCOME-TAX ACT FOR THE PERIOD PRIOR TO ASSESSMENT YEAR 2014-15.

 

 

"Agricultural Land" is excluded from the definition of capital asset as per section 2(14)(iii) of the Income-tax Act based, inter-alia, on its proximity to a municipality or cantonment board.  The method of measuring the distance of the said land from the municipality, has given rise to considerable litigation. Although, the amendment by the Finance Act  2013  w.e.f. 1.04.2014 prescribes the measurement of the distance to be taken aerially, ambiguity persists in respect of earlier periods.

 

 

2. The matter has been examined in light of judicial decisions on the subject. The Nagpur Bench of the Hon. Bombay High Court vide order dated 30.03.2015 in ITA 151 of 2013 in the case of Smt. Maltibai R Kadu has held that the amendment prescribing distance to be measured aerially, applies prospectively i.e. in relation to assessment year 2014-15 and subsequent assessment years. For the period prior to assessment year 2014-15, the High Court held that the distance between the municipal limit and the agricultural land is to be measured having regard to the shortest road distance. The said decision of the High Court has been accepted and the aforesaid disputed issue has not been further contested.

 

 

3. Being a settled issue, no appeals may henceforth be filed on this ground by the officers of the Department and appeals already filed, if any, on this issue before various Courts/ Tribunals may be withdrawn/ not pressed upon.  This may be brought to the notice of all concerned.

 

(D S CHAUDHRY)

CIT (A & J), CBDT, New Delhi.

Read On

ITR For A.Y 2014-15 can now also be e- verified

0 comments Wednesday, October 7, 2015
Government of India 
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block, 
New Delhi, 
the 6 th of October, 2015

Order under section 119(1) of Income-tax Act, 1961
Read On

All you need to know about tax free bonds

1 comments
Tax-free bonds are a very attractive investment opportunity available for an investor. Tax-fee bonds offer good diversification within the fixed income category with the additional advantage of tax-free gain alongside safety of capital. i.e., no tax on the interest and get the full slice of interest without any cut – 100% yours.
Read On

Documents required for luxury tax registration in Punjab

0 comments Sunday, October 4, 2015
Luxury Tax Registration
To apply for new ‘Luxury Tax registration’ the below documents are needed to submit in concerned district office front window by dealer who is applying for new Registration:-
Read On

Documents required for Punjab VAT registration

0 comments Friday, October 2, 2015
Value Added Tax (VAT)

To apply for new registration for VAT/CST in punjab the below documents are needed to submit in concerned district office front window by dealer who is applying for new Registration:-
Read On