Raj Kumar Bagri , Kolkata V. ACIT, Circle - 54, Kolkata , Kolkata

ITA 2544/KOL/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5724 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2003-2004
• Appeal Filed On: 26-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROBIN CHOUDHARY
• Assessee Lawyers: A L KACHAR; AMIT KUMAR KACHAR
• Keywords: Capital receipt; Set aside
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH B, KOLKATA BEFORE SH. S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 2544/KOL/2017 [ASSESSMENT YEAR: 2003-04] RAJ KUMAR BAGRI 17/3/1, DORPANARAYAN TAGORE STREET, KOLKATA- 700007. PAN-ADAPB9341A VS A C IT, CIRCLE-54, KOLKATA. (APPELLANT) (RESPONDENT) APPELLANT BY SH. AMIT KUMAR KACHAR AND SH. A.L. KACHAR, ADVOCATE RESPONDENT BY SH. ROBIN CHOUDHARY, DR DATE OF HEARING 2 2 .0 7 .201 9 DATE OF PRONOUNCEMENT 07 .08.2019 ORDER PER SH. S.S.GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR AY 2003-04 ARISES AGAINST THE ORDER DATED 18.09.2017 PASSED BY THE CIT(A)-21, KOLKATA IN APPEAL NO. 1187/ACIT-C- 54/CIT(A)-21/03-04/14-15/KOL IN PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT APPEAL SEEKS TO REVERSE THE CIT(A)S ACTION RESTORING THE ISSUE OF ASSESSMENT OF LUMP SUM COMPENSATION AMOUNT OF RS. 1,46,00,000/- BACK TO THE ASSESSING OFFICER AS UNDER: ITA NO. 2544/KOL/2017 [ASSESSMENT YEAR: 2003-04] RAJ KUMAR BAGRI PAGE | 2 ITA NO. 2544/KOL/2017 [ASSESSMENT YEAR: 2003-04] RAJ KUMAR BAGRI PAGE | 3 ITA NO. 2544/KOL/2017 [ASSESSMENT YEAR: 2003-04] RAJ KUMAR BAGRI PAGE | 4 ITA NO. 2544/KOL/2017 [ASSESSMENT YEAR: 2003-04] RAJ KUMAR BAGRI PAGE | 5 ITA NO. 2544/KOL/2017 [ASSESSMENT YEAR: 2003-04] RAJ KUMAR BAGRI PAGE | 6 ITA NO. 2544/KOL/2017 [ASSESSMENT YEAR: 2003-04] RAJ KUMAR BAGRI PAGE | 7 ITA NO. 2544/KOL/2017 [ASSESSMENT YEAR: 2003-04] RAJ KUMAR BAGRI PAGE | 8 ITA NO. 2544/KOL/2017 [ASSESSMENT YEAR: 2003-04] RAJ KUMAR BAGRI PAGE | 9 ITA NO. 2544/KOL/2017 [ASSESSMENT YEAR: 2003-04] RAJ KUMAR BAGRI PAGE | 10 ITA NO. 2544/KOL/2017 [ASSESSMENT YEAR: 2003-04] RAJ KUMAR BAGRI PAGE | 11 ITA NO. 2544/KOL/2017 [ASSESSMENT YEAR: 2003-04] RAJ KUMAR BAGRI PAGE | 12 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL CONTENTIONS AGAINST AND IN SUPPORT OF THE IMPUGNED ADDITION OF THE ASSESSEES LUMP SUM COMPENSATION AMOUNT OF RS. 1,46,00,000/- RECEIVED FROM HIS TWO PARTNERSHIP FARM(S). THERE IS FURTHER NO QUARREL THAT THE CIT(A) IS HIMSELF VERY VERY FAIR IN NOT DISPUTING THE RELEVANT FACTUAL BACKDROP IN THE INSTANT CASE TO BE IDENTICAL TO THAT IN THE CASE OF ONE SRI RAMKRISHNA AGARWAL (SUPRA). MR. CHOUDHARY VEHEMENTLY CONTENDS AT THIS STAGE THAT THE CIT(A) HAS RIGHTLY RESTORED THE INSTANT SOLE ISSUE BACK TO THE ASSESSING OFFICER FOR PASSING A FRESH ORDER AFTER NECESSARY FACTUAL VERIFICATION. WE FIND NO MERIT IN REVENUES INSTANT ARGUMENTS SUPPORTING THE CIT(A)S REMAND DIRECTIONS. WE MAKE IT CLEAR THAT THE LEGISLATURE HAS ITSELF OMITTED THE CLINCHING STATUTORY EXPRESSION HE MAY SET ASIDE APPEARING IN SECTION 251(1)(A) OF THE ACT VIDE FINANCE ACT, 2001 W.E.F. 01.06.2001. COUPLED WITH THIS, WE FIND THAT THE ASSESSING OFFICER IS CLEAR IN HIS ASSESSMENT ORDER THAT THE ASSESSEE HAD RECEIVED THE IMPUGNED COMPENSATION FROM HIS PARTNERSHIP FARM(S) AND THEREFORE, THE SAME IS IN THE NATURE OF PROFESSIONAL INCOME CHARGEABLE TO TAX. ALL THESE FACTS AND CIRCUMSTANCES FORMING PART OF THE CASE FILE LEAD US TO THE IRRESISTIBLE CONCLUSION THAT THE ASSESSEES RECEIPT OF COMPENSATION FROM ITS PARTNERSHIP FARM(S) IS INDEED IN THE NATURE OF A CAPITAL RECEIPT NOT CHARGEABLE TO TAX AS PER THE TRIBUNALS COORDINATE BENCH ORDER IN RAMKRISHNA AGARWAL(SUPRA). WE THEREFORE REVERSE THE ASSESSING OFFICERS ACTION IN ENTIRETY AND THE CIT(A)S FINDINGS IN PRINCIPLE TO ACCEPT THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE CANVASSED IN THE INSTANT APPEAL. THE IMPUGNED ADDITION OF RS. 1,46,00,000/- IN THE NATURE OF PARTNERSHIP FARM(S) COMPENSATION PAID TO THE ASSESSEE PARTNER STANDS DELETED BEING A CAPITAL RECEIPT. 3. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 07.08.2019. SD/- SD/- (A.L. SAINI) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE:- 07.08.2019 BIDHAN ITA NO. 2544/KOL/2017 [ASSESSMENT YEAR: 2003-04] RAJ KUMAR BAGRI PAGE | 13 COPY FORWARDED TO: 1. APPELLANT- RAJ KUMAR BAGRI, 17/3/1, DORPANARAYAN TAGORE STREET, KOLKATA- 700007. 2. RESPONDENT- ACIT, CIRCLE-54, KOLKATA. 3. CIT-KOLKATA 4. CIT(APPEALS)-21, KOLKATA (SENT THROUGH MAIL) 5. DR: ITAT-KOLKATA BENCHES (SENT THROUGH MAIL) AR/H.O.O ITAT, KOLKATA