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[Cites 1, Cited by 12]

Gujarat High Court

Thakorbhai Maganbhai Patel vs Income Tax Officer & on 10 August, 2016

Author: Akil Kureshi

Bench: Akil Kureshi, A.J. Shastri

                  C/SCA/4756/2016                                            ORDER



                  IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                     SPECIAL CIVIL APPLICATION NO. 4756 of 2016

         ==========================================================
                      THAKORBHAI MAGANBHAI PATEL....Petitioner(s)
                                      Versus
                       INCOME TAX OFFICER & 1....Respondent(s)
         ==========================================================
         Appearance:
         MR RK PATEL, ADVOCATE for the Petitioner(s) No. 1
         MR KM PARIKH, ADVOCATE for the Respondent(s) No. 1 - 2
         ==========================================================

          CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI
                 and
                 HONOURABLE MR.JUSTICE A.J. SHASTRI

                                    Date : 10/08/2016


                                     ORAL ORDER

(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)

1. While hearing this petition challenging a notice  for reopening of the petitioner's assessment for the  assessment   year   2008­09,   we   noticed   that   prime  question   is   of   charging   capital   gain   tax   to   the  petitioner upon sale of his agricultural land.   Case  of   the   petitioner   is   that   such   land   was   situated  beyond a distance of 8 kms from the limit of Vadodara  Municipal Corporation and was therefore, in terms of  section 2(14)(iii) of the Income Tax Act not exigible  to   capital   gain   tax.     In   this   respect   during   the  Page 1 of 4 HC-NIC Page 1 of 4 Created On Thu Sep 15 01:59:41 IST 2016 C/SCA/4756/2016 ORDER original   assessment,   the   petitioner   had   relied   on   a  certificate   dated   16.01.2013   issued   by   one   Shri  K.D.Patel,   Executive   Engineer,   Road   and   Building  Department, Vadodara, in which he had certified that  the distance between the limit of Vadodara Municipal  Corporation   and   village:Hanumanpura   is   more   than   8  kms.     A   copy   of   this   certificate   tendered   by   the  petitioner is taken on record.

2. In the reasons recorded by the Assessing Officer  for issuing the impugned notice for reopening, he has  referred   to   a   statement   of   Shri   Sohan   M.   Patel,  Additional   Assistant   Engineer,   Vadodara   Municipal  Corporation, recorded on oath on 10.07.2013, in which  he has stated that the land in question is situated at  a distance not more than 2 kms from the outer limits  of Vadodara Municipal Corporation.  We notice that the  department has obtained a certificate dated 11.03.2016  issued   by   the   Executive   Engineer,   Road   and   Building  Department, Vadodara, in which, it is stated that the  distance between the outer limit of Vadodara Municipal  Corporation and Hanumanpura bus stand is 2.8 kms.  The  income­tax authorities also have a certificate dated  12.07.2013   issued   by   Deputy   Municipal   Commissioner,  Page 2 of 4 HC-NIC Page 2 of 4 Created On Thu Sep 15 01:59:41 IST 2016 C/SCA/4756/2016 ORDER Vadodara Municipal Corporation, in which it is stated  that the shortest aerial distance between the survey  numbers in question ranges between 0.434 kms to 1.708  kms.

3. The later certificate referred to above, raise a  serious   doubt   about   the   veracity   of   the   first  certificate dated 16.01.2013 issued by the Executive  Engineer   Shri   K.D.Patel.     If   the   aerial   distance  between   the   plot   of   land   and   the   outer   limit   of  Vadodara Municipal Corporation is barely a half km.,  it seems very unlikely that a distance by road between  the   Vadodara   Municipal   Corporation   limits   and   the  village   in   question   would   exceed   8   kms.     We   would  therefore like to ascertain correct facts.  

4. Let the petitioner join the Secretary, Road and  Building   Division,   Government   of   Gujarat,   as   an  additional respondent.  

5. Let   there   be  NOTICE  to   the   newly   added  respondent,   returnable   on   31.08.2016.     On   the   said  date, he shall supply following details:

I. The exact distance by shortest road between  the outer limit of Vadodara Municipal Corporation  Page 3 of 4 HC-NIC Page 3 of 4 Created On Thu Sep 15 01:59:41 IST 2016 C/SCA/4756/2016 ORDER as on 31.03.2008 and lands bearing revenue survey  numbers   43,   44,   45,   46   and   65   and   block  No.23paiki3(23A) of village:Hanumanpura. II. The   authority   shall   also   indicate   whether  Shri   K.D.Patel,   Executive   Engineer,   Road   and  Building   Department,   Vadodara,   is   still   in  service.     If   so,   his   affidavit   shall   be   filed  stating as to on what basis the said certificate  dated 16.01.2013 was issued by him.  
 

6. For said purpose, alongwith this order, the newly  added   respondent   shall   also   be   supplied   a   copy   of  certificate dated 16.01.2013.   Direct service to the  newly added respondent is permitted. 

(AKIL KURESHI, J.) (A.J. SHASTRI, J.) ANKIT Page 4 of 4 HC-NIC Page 4 of 4 Created On Thu Sep 15 01:59:41 IST 2016