ACIT, CHENNAI V. Natarajan Neelamegan, CHENNAI

ITA 3374/CHNY/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 4448 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 16-12-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Section: 54F

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , .. ' #$, & '( BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./ ITA NO.3374/MDS/2016 * +* / ASSESSMENT YEAR : 2012-13 THE ASSISTANT COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE 15, CHENNAI. V. SHRI NATARAJAN NEELAMEGAN, NO.3, KARUNANITHI ROAD, SHOLINGANALLUR, CHENNAI - 600 119. PAN : AHXPN 4051 E (-./ APPELLANT) (/0-./ RESPONDENT) -. 1 2 / APPELLANT BY : SHRI A.V. SREEKANTH, JCIT /0-. 1 2 / RESPONDENT BY : NONE ' 1 3& / DATE OF HEARING : 06.03.2017 45+ 1 3& / DATE OF PRONOUNCEMENT : 31.05.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) 15, CHEN NAI, DATED 31.08.2016 AND PERTAINS TO ASSESSMENT YEAR 2012-13. 2. THE NOTICE OF HEARING ISSUED TO THE ASSESSEE BY RPAD WAS RETURNED BY THE POSTAL AUTHORITIES WITH AN ENDORSEM ENT INTIMATION 2 I.T.A. NO.3374/MDS/16 NOT CLAIMED. THEREFORE, WE HAVE HEARD LD. DEPARTM ENTAL REPRESENTATIVE AND PROCEEDED TO DISPOSE THE APPEAL ON MERIT. 3. SHRI A.V. SREEKANTH, THE LD. DEPARTMENTAL REPRES ENTATIVE, SUBMITTED THAT THE ONLY ISSUE ARISES FOR CONSIDERAT ION IS WHETHER THE LAND IN QUESTION IS AGRICULTURAL LAND AND THE GAIN ARISING OUT OF TRANSFER OF SUCH LAND IS EXEMPTED UNDER SECTION 54F OF THE INCOME- TAX ACT, 1961 (IN SHORT 'THE ACT')? THE LD. D.R. S UBMITTED THAT IN FACT, THE CIT(APPEALS) REMITTED BACK THE MATTER TO THE FILE OF THE ASSESSING OFFICER. ACCORDING TO THE LD. D.R., THE CIT(APPEALS) HAS NO POWER TO REMIT BACK THE MATTER TO THE FILE OF TH E ASSESSING OFFICER. THE CIT(APPEALS) HAS TO EXAMINE THE MATER IAL FILED BY THE ASSESSEE EITHER BY HIMSELF OR HE CAN CALL FOR REMAN D REPORT FROM THE ASSESSING OFFICER. ACCORDING TO THE LD. D.R., HE H AS NO AUTHORITY TO REMAND BACK THE MATTER TO THE FILE OF THE ASSESSING OFFICER. 4. WE HAVE HEARD LD. DEPARTMENTAL REPRESENTATIVE AN D PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMITTED LY, THE ASSESSEE FILED CERTAIN MATERIAL BEFORE THE CIT(APPEALS) TO S UBSTANTIATE THAT THE LAND IN QUESTION IS AGRICULTURAL LAND. THE CIT (APPEALS) DIRECTED THE ASSESSING OFFICER TO VERIFY THE MATERIAL FILED BY THE ASSESSEE BEFORE HIM AND THEREAFTER DISPOSE OF THE CLAIM MADE BY THE 3 I.T.A. NO.3374/MDS/16 ASSESSEE. AS RIGHTLY SUBMITTED BY THE LD. D.R., TH E CIT(APPEALS) HAS NO POWER TO SET ASIDE THE ASSESSMENT ORDER AND REMAND BACK THE MATTER. THE CIT(APPEALS) HAS TO EITHER DISPOSE THE APPEAL ON MERIT AFTER CONSIDERING THE MATERIAL FILED BEFORE H IM OR HE MAY AT THE BEST CALL FOR REMAND REPORT AND THEREAFTER DECIDE T HE ISSUE ON MERIT. 5. FOR THE PURPOSE OF DETERMINING WHETHER THE LAND IS AGRICULTURAL LAND OR NOT, THE CLASSIFICATION OF LAN D BY THE STATE REVENUE AUTHORITIES HAS TO BE BROUGHT ON RECORD. T HE ASSESSING OFFICER IS EXPECTED TO EXAMINE THE ENTRIES MADE IN THE ADANGAL REGISTER MAINTAINED BY THE VILLAGE ADMINISTRATIVE O FFICER. IN THIS CASE, BOTH THE AUTHORITIES BELOW HAVE NOT EXAMINED THE CLASSIFICATION MADE BY THE STATE REVENUE AUTHORITIE S AND CULTIVATION ACCOUNT MAINTAINED BY THE VILLAGE ADMINISTRATIVE OF FICER. THE CULTIVATION ACCOUNT IS OTHERWISE KNOWN AS VILLAGE A CCOUNT NO.2 OR ADANGAL. THIS TRIBUNAL IS OF THE CONSIDERED OPINIO N THAT THIS MATERIAL DOCUMENT HAS TO BE EXAMINED BEFORE DECIDIN G THE MATTER. ACCORDINGLY, THE ORDERS OF THE AUTHORITIES BELOW AR E SET ASIDE AND THE ENTIRE ISSUE IS REMITTED BACK TO THE FILE OF TH E ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RE-EXAMINE THE ISSUE AF RESH AND BRING ON RECORD THE CLASSIFICATION OF THE LAND MADE BY TH E STATE REVENUE 4 I.T.A. NO.3374/MDS/16 AUTHORITIES. THE ASSESSING OFFICER SHALL BRING ON RECORD THE SOURCE OF IRRIGATION FOR CULTIVATING THE LAND AND THE ENTR IES MADE IN THE ADANGAL REGISTER BY THE VAO REGARDING CULTIVATION A ND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFT ER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 31 ST MAY, 2017 AT CHENNAI. SD/- SD/- ( . . ' #$ ) ( . . . ) (D.S. SUNDER SINGH) (N.R.S. GANESAN) & / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 7 /DATED, THE 31 ST MAY, 2017. KRI. 1 /3#8 98+3 /COPY TO: 1. -. /APPELLANT 2. /0-. /RESPONDENT 3. ' :3 () /CIT(A)-15, CHENNAI 4. PRINCIPAL CIT-6, CHENNAI 5. 8; /3 /DR 6. * < /GF.