COMMISSIONER OF INCOME TAX CHENNAI Vs. VENKATESWARA HOSPITAL

JUDGEMENT

(1.) This appeal is against an order dtd. 17/3/2017 of the Income Tax Appellate Tribunal 'A' Bench, Chennai, allowing the appeal of the assessee, being I.T.A.No.1769/MDS/2016, against the order dtd. 18/3/2006 of the Appellate Commissioner dismissing the appeal, being I.T.A.No.224/CIT(A)-2/2014-15, of the assessee against an order of assessment dtd. 29/1/2015 pertaining to the assessment year 2012-2013.

(2.) The assessee, a registered firm, was carrying on the business of running a nursing home and pharmacy. The assessee filed its return of income for the assessment year 2012-2013 on 29/9/2012 showing income of Rs.2,91,81,370.00.

(3.) The case of the assessee was selected for scrutiny and notice was issued under Sec. 143(2) of the Income Tax Act, 1961 (hereinafter referred to as the Act ). It appears that during the relevant previous year, the assessee had sold 2 acres and 78 cents of agricultural land at Thirutheri Village, Kattangalathur Panchayat for a sum of Rs.8,01,00,000.00 to one K.Dhanasekaran. The assessee claimed exemption from capital gain arising from sale of land on the ground that it was agricultural land. The assessee furnished certificate of the Village Officer certifying that the land was situated beyond 8 kms. from the limits of the municipality and the population was less than 10000.