आदेश/ORDER 

PER RAMIT KOCHAR, ACCOUNTANT MEMBER:

This appeal filed by the assessee is directed against appellate Order dated 08.06.2017 passed by learned Commissioner of Income Tax (Appeals)-2, Chennai (hereinafter called “the CIT(A)”), in ITA No.239/CIT(A)-2/2015-16, dated 08.06.2017 for assessment Year (ay) 2008-09, the appellate proceedings before learned CIT(A) had arisen from assessment order dated 03.03.2016 passed by learned Assessing Officer (hereinafter called “the AO”) u/s.143(3) read with Section 147 of the Income-tax Act, 1961 (hereinafter called “the Act”).

2. The grounds of appeal raised by assessee in memo of appeal filed with the Income-Tax Appellate Tribunal, Chennai (hereinafter called “the Tribunal”) read as under:-

“1. The Assessing officer erred in re-opening the regular assessment made under section 143(3), after expiry of four years, on mere change of opinion and in violation of the proviso to section 147 of the Act.

2. The authorities below erred in holding that the land sold by the appellant was not an agricultural land.

3. The Assessing officer ought to have seen that alleged conversion of the land into residential area on 1/8/2017 was much after the date of sale of the property by the appellant on 26/7/2007 and therefore he should not have based his assessment on such material.

4. The appellant submits that the land was classified as Nanjai, wet agricultural land before the date of sale and even after the date of sale the land is classified as Nanjai wet agriculture land. in the revenue records and therefore the same has to be treated as agricultural land in the light of the settled law laid down by various Courts.

5. The appellant submits that the land was purchased as agricultural land and sold as such without any conversion and simply because the sale consideration was high the land sold cannot be treated as non-agricultural.

6. The appellant therefore prays that the re-assessment may be cancelled as invalid in law and the profit on sale of agricultural land may be allowed exemption as it was not a capital asset within the meaning of section 2(14) of the Act and render justice.”

3. The brief facts of the case are that the assessee is an individual and filed return of income which was originally processed u/s.143(3) of the Act by framing of scrutiny assessment. The assessee has sold 4.45 acres of agricultural land at Thaiyur Village under various survey numbers and made short term capital gains of Rs. 9,11,17,182/- which was claimed as an exempt income on the grounds that capital gains arising on sale of a agricultural land is exempt from income-tax. The AO on verification observed that land under Survey No.1248 & 1249 was classified as ‘Residential Area Clause-1’ and hence the said land is capital asset wherein short term capital gains arising from sale of said land is chargeable to tax in respect of Survey Nos.1248 & 1249. The case of the assessee was reopened by AO by invoking provisions of Section 147 of the 1961 Act and notice u/s.148 dated 08.08.2014 was issued by the AO to the assessee. Admittedly the reopening of the concluded assessment was done by Revenue beyond four years from the end of assessment year and originally return of income was processed by Revenue by conducting scrutiny assessment u/s 143(3) of the 1961 Act. The assessee on his part during the course of re-assessment proceedings submitted that the return of income originally filed be treated as return of income filed in response to notice issued u/s 148 of the 1961 Act. The assessee submitted before the AO screenshot of website showing the classification of land as agricultural land for the period from 2003-2007 and it was claimed by the assessee that the land was sold on 26/07/2007 while the said land was classified as residential by Government only on 01/08/2007, which is 5 days after the sale of the land. The AO observed that the assessee has sold the land in very short period of time at a value which is six time the acquisition pri