Deputy Commissioner of Income-tax, Circle -7, Pune V. K F Bioplant Private Ltd., Pune

ITA 408/PUN/2022

AI Insights

The case involves the Revenue's appeal against the order of the National Faceless Appeal Centre, which had upheld the CIT(A)'s decision exempting the agricultural income of M/s. K.F. Bioplants Private Limited from tax. The assessee had declared agricultural income from its activities in plant floriculture and tissue culture, which the Assessing Officer had previously treated as non-agricultural income based on earlier years' assessments. However, the CIT(A) reversed this decision, leading to the Revenue's appeal. The Tribunal found consistency in its earlier rulings on similar issues in favor of the assessee, which had not been contested by the High Court.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137754 (ITAT-PUNE)
• Duration Of Justice: 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 15-01-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 23-05-2022
• Other Referred Cases: Cognizance for Extension of Limitation, In re 438 ITR 296 (SC), Cognizance for Extension of Limitation, In re 432 ITR 206 (SC), 421 ITR 314, M.A.No.21/2022 in M.A.No.665/2021 in Suo motu W.P.(C) No.03/2020
• Laws Referred To: Cognizance for Extension of Limitation, In re 438 ITR 296 (SC), Cognizance for Extension of Limitation, In re 432 ITR 206 (SC), 421 ITR 314, M.A.No.21/2022 in M.A.No.665/2021 in Suo motu W.P.(C) No.03/2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAJENDRA AGIWAL; BHAVIN BALDOTA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH, ‘A’ PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.408/PUN/2022 नधा रण वष / Assessment Year : 2012-13 DCIT, Circle-7 Pune Vs. M/s. K.F. Bioplants Private Limited, 2413, Kumar Capital, Ist Floor, East Street, Pune 411 001 Maharashtra PAN : AABCK4309E Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the Revenue is directed against the order passed by the National Faceless Appeal Centre, Delhi, on 28-12-2021 in relation to the assessment year 2012-13. 2. The appeal is time barred by 87 days. The Revenue filed the appeal in the year 2022. Prima-facie, the delay pertains to the covid-19 pandemic period, which prevailed across the country. No objection was taken by the ld. AR to the condonation of the delay. Therefore, the delay is condoned and Assessee by Shri Rajendra Agiwal & Shri Bhavin Baldota Revenue by Shri Ramnath P. Murkunde Date of hearing 16-01-2023 Date of pronouncement 16-01-2023 ITA No.408/PUN/2022 M/s. K.F. Bioplants Private Limited 2 the appeal is admitted for disposal of merits, by virtue of the judgment of the Hon’ble Supreme Court in Cognizance for Extension of Limitation, In re 438 ITR 296 (SC) read with judgment in Cognizance for Extension of Limitation, In re 432 ITR 206 (SC) dated 08-03-2021, 421 ITR 314 and M.A.No.21/2022 in M.A.No.665/2021 in Suo motu W.P.(C) No.03/2020, dt. 10-01-2022. 3. The only issue raised in this appeal is against the direction of the ld. CIT(A) to treat the assessee’s income as agricultural income and hence, exempt. 4. Briefly stated, the facts of the case are that the assessee is engaged in plant floriculture and tissue culture of agricultural activities. A return declaring total income of Rs.1.17 crore was furnished. The assessee earned agricultural income of Rs.2,85,29,972/-, which was claimed as exempt. The Assessing Officer (AO), taking note of the orders passed by him for the A.Yrs. 2004-05 and 2011-12, treated the said agricultural income as non-agricultural and hence chargeable to tax. The ld. CIT(A) ITA No.408/PUN/2022 M/s. K.F. Bioplants Private Limited 3 deleted the addition, against which the Revenue has approached the Tribunal. 5. We have heard the rival submissions and gone through the relevant material on record. It is seen that the issue about treating agricultural income of Rs.2.85 crore as non-agriculture by the AO and again the agricultural income by the ld. CIT(A) came up for consideration before the Tribunal in assessee’s own case for earlier years. For the A.Y. 2004-05, as relied on by the AO, the Tribunal in ITA No.146/PN/2008 has decided it in favour of the assessee vide its order dated 26-03-2009. The assessment order for A.Y. 2011-12, namely, the immediately preceding assessment year also came up for consideration before the Tribunal. Vide order dated 09-06-2017, the Tribunal in ITA No.1152/PUN/2015 has again followed the earlier order of the Tribunal and treated the amount as not chargeable to tax. The ld. AR submitted that the matter is still pending before the Hon’ble High Court. The ld. DR did not controvert the factual position. In view of the above facts, when the earlier orders of the Tribunal on this very issue, deciding the point in favour of the assessee, have not been adversely adjudicated by the Hon’ble High Court, we are of the ITA No.408/PUN/2022 M/s. K.F. Bioplants Private Limited 4 considered opinion that the impugned order, following such orders, does not require any interference. We, therefore, uphold the same. 6. In the result, the appeal is dismissed. Order pronounced in the Open Court on 16 th January, 2023. Sd/- Sd/- ( S.S. VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 16 th January, 2023 सतीश आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to : 1. अपीलाथ / The Appellant; 2. थ / The Respondent 3. The CIT(A) concerned 4. 5. The Pr. CIT concerned DR, ITAT, ‘A’ Bench, Pune 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No.408/PUN/2022 M/s. K.F. Bioplants Private Limited 5 Date 1. Draft dictated on 16-01-2023 Sr.PS 2. Draft placed before author 16-01-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *