Amaranarayana Reddy, CHENNAI V. DCIT Corporate Circle 6(1)(i/c), CHENNAI

CO 106/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9929 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 2 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 26-03-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 23-08-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SAILENDRA MAMIDIPCIT
• Assessee Lawyers: G BASKAR
• Keywords: Business income

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , . , ! BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER , AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NOS.1377, 1378 & 2051/CHNY/2018 /ASSESSMENT YEARS: 2009-10, 2012-13 & 2013-14 & CO NOS.106 & 107/CHNY/2018 (IN ITA NOS. 1377 & 1378/CHNY/2018) /ASSESSMENT YEARS: 2009-10 & 2012-13 THE DY. COMMISSIONER OF- INCOME TAX, CORPORATE CIRCLE-6(1), AAYAKAR BHAVAN, WANAPARTHY BLOCK, 7 TH FLOOR, 121, M.G. ROAD, CHENNAI-34. VS. SHRI AMARANARAYANA REDDY SIDDAVARAPU, NO.220, SRINIVASA AVENUE, VGP LAYOUT-II, ECR ROAD, UTHANDI, CHENNAI-600 020. [PAN: AIEPS 6384 D ] ( % /APPELLANT) ( &'% /RESPONDENT / CROSS OBJECTOR) DEPARTMENT BY : MR. SAILENDRA MAMIDI, PCIT ASSESSEE BY : MR.G.BASKAR, ADV. ) /DATE OF HEARING : 26.03.2019 ) /DATE OF PRONOUNCEMENT : 26.03.2019 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : ITA NOS.1377 & 1378/CHNY/2018 ARE THE APPEALS FILE D BY THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX (APPEALS)- 15, CHENNAI, IN ITA NO.194/2015-16/CIT(A)-15 & ITA NO.194/2015- 16/CIT(A)-15 DATED 30.01.2018 FOR THE AYS 2009-10 & 2012-13 ITA NOS.1377, 1378 & 2051/CHNY/2018 & CO NOS.106 & 107/CHNY/2018 :- 2 -: RESPECTIVELY AND ITA NO.2051/CHNY/2018 IS AN APPEA L FILED BY THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX (APPEALS)- 15, CHENNAI, IN ITA NO.634/2016-17/CIT(A)-15 DATED 28.03.2018 FOR THE AY 2013-14. CO NOS.106 & 107/CHNY/2018 ARE THE CRO SS-OBJECTIONS FILED BY THE ASSESSEE IN ITA NOS.1377 & 1378/CHNY/2018 FO R THE AYS 2009-10 & 2012-13 RESPECTIVELY. 2. MR. SAILENDRA MAMIDI, PCIT., REPRESENTED ON BEHA LF OF THE REVENUE AND MR.G.BASKAR, ADV., REPRESENTED ON BEHALF OF THE ASSESSEE. 3. IT WAS SUBMITTED BY THE LD.DR THE ISSUES IN THES E APPEALS WERE PRIMARILY AGAINST THE ACTION OF THE LD.CIT(A) IN DI RECTING THE AO TO DELETE THE INCOME FROM THE SALE OF THE AGRICULTURAL LAND T REATED BY THE AO AS INCOME FROM BUSINESS. IT WAS FAIRLY AGREED BY BOTH THE SIDES THAT THE ISSUES IN THESE APPEALS WERE SQUARELY COVERED BY TH E DECISION OF THE CO- ORDINATE BENCH OF THIS TRIBUNAL IN THE ASSESSEES O WN CASE FOR THE AY 2010-11 IN ITA NO.1263/MDS/2015 DATED 15.07.2016, W HEREIN, THE CO- ORDINATE BENCH OF THIS TRIBUNAL IN PARA NO.8 HAS HE LD AS FOLLOWS: 8. IN THE APPELLATE ORDER, THE LD. CIT(A) CONSIDERED EACH AND EVERY ASPECTS AND PASSED A DETAILED SPEAKING ORDER AND ALSO DISTINGUISHED THE CASE LAW RELIED ON BY THE ASSESSING OFFICER AND CONCLUDED THAT THE HOLDING OF LANDS BY T HE ASSESSEE AND CARRYING ON THE ACTIVITY OF AGRICULTURE CONTINUOUSLY ON THE LANDS, WITHOUT A NY CONVERSION OF SUCH LANDS INTO FURTHER DEVELOPMENTS SUCH AS COMMERCIALISATION/PLOTTING OF LANDS, DO NOT AMOUNT TO ADVENTURE IN NATURE OF TRADE. THE MERE SALE OF FEW PIECES OF LAN DS HERE AND THERE, NOW AND THEN, IRRESPECTIVE OF THEIR VALUE, AS LONG AS THE SAID AS SETS/LANDS DID NOT LOSE THE BASIC CHARACTER OF AGRICULTURAL LANDS, DOES NOT CONSTITUTE BUSINESS ACTIVITY FOR THE ASSESSEE. APART FROM THIS, THE VAO HAS FURNISHED CERTIFICATE, WHICH INDICATES T HAT THE LAND UNDER REFERENCE ARE AGRICULTURAL LAND AND THERE WAS NO EVIDENCE TO SHOW THAT THE ASSESSEE HAS CHANGED THE LAND FOR NON-AGRICULTURAL PURPOSE. THEREFORE, THE L AND HELD AND SOLD BY THE ASSESSEE WERE CERTIFIED AND PROVED AS AGRICULTURAL LAND AND AGRIC ULTURAL INCOMES ARE OFFERED ON SUCH LANDS, YEAR AFTER YEAR, AND THE SAME IS NOT DISPUTED BY TH E ASSESSING OFFICER. HOWEVER, THE MAIN CONTENTION OF THE ASSESSING OFFICER IS THAT THERE WA S A DISPROPORTIONATE QUANTUM OF AGRICULTURAL INCOME COMPARED TO THE VALUE OF THE AG RICULTURAL LANDS FROM WHICH AGRICULTURAL ITA NOS.1377, 1378 & 2051/CHNY/2018 & CO NOS.106 & 107/CHNY/2018 :- 3 -: INCOME WAS RAISED. THAT IS NOT AN APPROPRIATE BASIS TO COME TO A CONCLUSION THAT SUCH LANDS ARE NOT AGRICULTURAL LAND. THEREFORE, WE FIND NO FO RCE IN THE ARGUMENT OF THE LD. DR THAT THE ASSESSEE HAS NOT SHOWN ANY AGRICULTURAL ACTIVITIES. MOREOVER, THE LD. CIT(A) HAS RELIED ON VARIOUS DECISIONS AND CAME TO A RIGHT CONCLUSION TH AT THE ADDITION ON ACCOUNT OF TREATING THE AMOUNT OF .3,04,01,161/-, WHICH IS THE MARGIN/GA INS TO THE ASSESSEE ON SALE OF LANDS, AS BUSINESS INCOME IS NOT SUSTAINABLE, SINCE THE LA NDS UNDER REFERENCE WERE HELD TO BE AGRICULTURAL LANDS, AND THE ACTIVITIES OF PURCHASE AND SALE OF SUCH AGRICULTURAL LAND, IN OUR OPINION DID NOT CONSTITUTE BUSINESS. THUS, WE FIND NO REASON TO INTERFERE WITH THE ORDER PASSED BY THE LD. CIT(A) ON THIS ISSUE AND ACCORDING LY, THE GROUND RAISED BY THE REVENUE IS DISMISSED. 4. THE LD.AR VEHEMENTLY SUPPORTED THE ORDER OF THE AO. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. 6. AS IT IS NOTICED THAT THE ISSUES IN THESE APPEAL S ARE SQUARELY COVERED BY THE DECISION OF THE CO-ORDINATE BENCH OF THIS TR IBUNAL IN THE ASSESSEES OWN CASE FOR THE AY 2010-11, REFERRED TO SUPRA, WE FIND NO REASON TO INTERFERE WITH THE ORDER OF THE LD.CIT(A). CONSEQU ENTLY, APPEALS FILED BY THE REVENUE ARE DISMISSED. 7. NO OTHER GROUNDS IN THE REVENUE APPEALS HAVE BEE N SPECIFICALLY CONTESTED. 8. IN REGARD TO CROSS-OBJECTIONS FILED BY THE ASSES SEE, IT WAS SUBMITTED BY THE LD.AR THAT THE CROSS-OBJECTIONS WERE IN SUPP ORT OF THE ORDER OF THE LD.CIT(A). AS WE HAVE ALREADY DISMISSED THE REVENU E APPEALS, THE CROSS- OBJECTIONS FILED BY THE ASSESSEE BECOME INFRUCTUOUS AND ARE DISMISSED AS INFRUCTUOUS. ITA NOS.1377, 1378 & 2051/CHNY/2018 & CO NOS.106 & 107/CHNY/2018 :- 4 -: 9. IN THE RESULT, THE APPEALS FILED BY THE REVENUE AND THE CROSS- OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 26 TH DAY OF MARCH, 2019 IN CHENNAI. SD/- SD/- ( . ) ( A. MOHAN ALANKAMONY ) /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) /JUDICIAL MEMBER /CHENNAI, / /DATED: 26 TH MARCH, 2019. TLN ) &01 21 /COPY TO: 1. % /APPELLANT 4. 3 /CIT 2. &'% /RESPONDENT 5. 1 & /DR 3. 3 ( ) /CIT(A) 6. /GF