Siddhart Dube, The Nilgiris V. ITO International Taxation, Coimbatore

ITA 2765/CHNY/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0865 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 26-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Capital asset; Set aside
• Section: 54

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , , ' # BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.2765/CHNY/2018 & S.P. NO.322/CHNY/2018 (IN I.T.A. NO.2765/CHNY/2018) & '& / ASSESSMENT YEAR : 2015-16 SHRI SIDDHART DUBE, NO.48, PRAGATI BUILDING, FIGURE OF 8 ROAD, EAST OF KAILASH, COONOOR, THE NILGIRIS 643 204. PAN : AILPD 4763 E V. THE INCOME TAX OFFICER, INTERNATIONAL TAXATION, COIMBATORE. ( APPELLANT & PETITIONER) ()*+,/ RESPONDENT) +, - . / APPELLANT BY : SHRI ASHOK A. KULKARNI, ADVOCATE )*+, - . / RESPONDENT BY : SHRI R. CLEMENT RAMESH KUMAR, ADD L.CIT / - 0' / DATE OF HEARING : 12.11.2018 12' - 0' / DATE OF PRONOUNCEMENT : 16.11.2018 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -16, CHENN AI, DATED 09.08.2018 AND PERTAINS TO ASSESSMENT YEAR 2015-16. 2 I.T.A. NO.2765/CHNY/18 S.P. NO.322/CHNY/18 2. SHRI ASHOK A. KULKARNI, THE LD.COUNSEL FOR THE A SSESSEE, SUBMITTED THAT THE ASSESSEE TRANSFERRED AGRICULTURA L LAND DURING THE YEAR UNDER CONSIDERATION. ACCORDING TO THE LD. COU NSEL, IN THE AGRICULTURAL LAND, WHEREIN TEA WAS CULTIVATED BY TH E ASSESSEE, A FARM HOUSE WAS ALSO CONSTRUCTED IN THE LAND. ACCOR DING TO THE LD. COUNSEL, THE ASSESSEE HAS INVESTED THE CAPITAL GAIN ON SALE OF AGRICULTURAL LAND AND CLAIMED EXEMPTION UNDER SECTI ON 54 OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). ACCORDI NG TO THE LD. COUNSEL, EVEN IF THE SALE PROCEEDS WERE NOT INVESTE D FOR THE PURPOSE OF EXEMPTION UNDER SECTION 54 OF THE ACT, S TILL THE PROFIT ON SALE OF AGRICULTURAL LAND IS EXEMPTED, THEREFORE, I T CANNOT BE TAXED. PLACING RELIANCE ON THE ADANGAL EXTRACT, THE LD.COU NSEL SUBMITTED THAT THE ASSESSEE, IN FACT, CULTIVATED TEA PLANT, T HEREFORE, THE SALE OF LAND IN WHICH TEA WAS CULTIVATED, CANNOT BE CONSTRU ED TO BE TRANSFER OF CAPITAL ASSET. IN OTHER WORDS, ACCORDING TO THE LD. COUNSEL, THE SALE PROCEEDS OF SALE OF AGRICULTURAL LAND WHEREIN TEA WAS CULTIVATED, IS EXEMPTED FROM TAXATION. ON A QUERY FROM THE BEN CH, WHETHER THE COPY OF ADANGAL EXTRACT NOW FILED BEFORE THIS TRIBU NAL WAS FILED BEFORE THE ASSESSING OFFICER AND THE CIT(APPEALS), THE LD.COUNSEL 3 I.T.A. NO.2765/CHNY/18 S.P. NO.322/CHNY/18 VERY FAIRLY ADMITTED THAT THE SAME WAS NOT FILED BE FORE THE CIT(APPEALS). 3. WE HEARD SHRI R. CLEMENT RAMESH KUMAR, THE LD. DEPARTMENTAL REPRESENTATIVE ALSO. THE ASSESSING OF FICER AS WELL AS THE CIT(APPEALS) REJECTED THE CLAIM OF EXEMPTION UNDER SECTION 54 OF THE ACT. NOW, THE ASSESSEE CLAIMS THAT WHAT WAS TRANSFERRED BY THE ASSESSEE IS AGRICULTURAL LAND WHEREIN TEA WA S CULTIVATED. THIS FACT WAS NOT EXAMINED BY THE ASSESSING OFFICER AS WELL AS THE CIT(APPEALS). IT IS AN ADMITTED FACT THAT THE ADAN GAL EXTRACT, A COPY OF WHICH IS AVAILABLE BEFORE THIS TRIBUNAL NOW, WAS NOT AVAILABLE BEFORE THE LOWER AUTHORITIES. THEREFORE, THE LOWER AUTHORITIES HAD NO OCCASION TO EXAMINE WHETHER THE SALE PROCEEDS OF SA LE OF LAND, WHEREIN TEA WAS CULTIVATED, WAS EXEMPTED FROM TAXAT ION OR NOT. 4. THIS TRIBUNAL BEING A FINAL FACT FINDING AUTHORI TY, THE FACTS HAVE TO BE SETTLED SO THAT THE APPELLATE FORUM MAY APPRECIATE THE GRIEVANCE OF THE PARTIES IN A BETTER MANNER. SINCE THE ADANGAL EXTRACT WAS FILED FIRST TIME BEFORE THIS TRIBUNAL, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ASSESSING OFFICER HAS T O RE-EXAMINE THE MATTER. ACCORDINGLY, IN THE INTEREST OF JUSTICE, T HE ORDERS OF BOTH THE 4 I.T.A. NO.2765/CHNY/18 S.P. NO.322/CHNY/18 AUTHORITIES BELOW ARE SET ASIDE AND THE MATTER IS R EMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING O FFICER SHALL RE- EXAMINE THE MATTER IN THE LIGHT OF THE ADANGAL EXTR ACT AND OTHER DOCUMENTS THAT WOULD BE FILED BY THE ASSESSEE AND F IND OUT WHETHER THE LAND IS AGRICULTURAL LAND AND THE SALE PROCEEDS WERE EXEMPTED FROM TAXATION AND THEREAFTER DECIDE THE ISSUE AFRES H IN ACCORDANCE WITH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. CONSEQUENTLY, THE STAY PETIT ION STANDS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 16 TH NOVEMBER, 2018AT CHENNAI. SD/- SD/- ( ) ( . . . ) (S. JAYARAMAN) (N.R.S. GANESAN) ' / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 16 TH NOVEMBER, 2018. KRI. 5 I.T.A. NO.2765/CHNY/18 S.P. NO.322/CHNY/18 - )056 76'0 /COPY TO: 1. +,/ APPELLANT 2. )*+,/ RESPONDENT 3. / 80 () /CIT(A)-16, CHENNAI 4. PRINCIPAL CIT, TAMIL NADU, CHENNAI 5. 69 )0 /DR 6. :& ; /GF.