Trichur Techno Park P. Ltd, Thrissur V. The ITO, Thrissur

ITA 52/COCH/2021

AI Insights

The case involves M/s. Trichur Technopark Pvt. Ltd., which appealed against the order of the CIT(A)/National Faceless Appeal Centre, Delhi, concerning the assessment year 2014-15. The primary issue was the treatment of a sum of Rs.4,62,057, derived from the sale of rubber produce on its technopark land. The lower authorities had treated this income as 'other sources' and not as business income, which the assessee contested. The Tribunal, referencing a Special Bench decision, overturned the lower authorities' findings, accepting the assessee's position that the income should be classified as business income.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 115528 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 31-12-0000
• Assessment Year: misc
• Appeal Filed On: 03-05-2021
• Other Referred Cases: Inventaa Industries Pvt. Ltd. case (2018) 95 taxmann.com162 (Hyd)(SB)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Satbeer Singh Godara, Judicial Memberand Shri Manoj Kumar Aggarwal, Accountant Member ITA No.52/Coch/2021 (Assessment Year: 2014-15) M/s. Trichur Technopark Pvt. Ltd. 9/256, IDCO Building Industrial Estate, Peringandoor P.O. Athani, Thrissur 680581 Vs. Income Tax Officer, Wd. -3 Thrissur PAN –AACCT5677K Appellant Respondent Appellant by: Dr. Santhakumar K., CA Respondent by: Smt. J.M. Jamuna Devi, Sr. D.R. Date of Hearing: 09.11.2022 Date of Pronouncement: 19.12.2022 O R D E R Per: Bench This assessee’s appeal for A.Y. 2014-15 arises against the CIT(A)/ National Faceless Appeal Centre (NFAC), Delhi’s order dated 04.03.2021, passed in case No. CIT(A), Thrissur/13046/2016-17, involving proceedings under Section 143(3) of the Income Tax Act, 1961 (in short the Act). Heard both the parties. Case file perused. 2. It emerges during the course of hearing that the assessee’s sole issue substantive question arises for our apt adjudication herein is that of treatment of a sum of Rs.4,62,057/- which is stated to have been derived from sale of rubber produce grown on its technopark land. 3. Learned DR vehemently supported both the lower authorities’ findings that they had rightly declined business income plea. She further took us to the detailed assessment findings in the assessment order dated ITA No. 385/Coch/2020 M/s. Kunnummakkara Service/Income Tax Officer, W(2)(2) 2 27.12.2016 disallowing corresponding expenditure claim of Rs.3,51,340/- as well thereby assessing the total amount herein above as income from “other” sources. Suffice to say, the CIT(A) has affirmed the Assessing Officer’s action in principle but accepted the assessee’s expenditure claim under Section 57(iii) of the Act as wholly and exclusively incurred for the above residuary head of income. 4. We have given our thoughtful consideration to the foregoing Revenue’s contentions and find that this tribunal’s Special Bench’s decision in Inventaa Industries Pvt. Ltd. case (2018) 95 taxmann.com162 (Hyd)(SB), has already settled the issue by holding that it is nowhere necessary for a company to own agricultural land for deriving Section 10(1) exempt income per se. We make it clear that the said assessee had in fact derived income from sale of mushroom only. Faced with this situation we accept the assessee’s instant sole substantive grievance. Ordered accordingly. Necessary computation shall follow as per law. 5. This assessee’s appeal is allowed in above terms. Dictated and pronounced in the open Court on 19 th December, 2022. Sd/- Sd/- (Manoj Kumar Aggarwal) (Satbeer Singh Godara) Accountant Member Judicial Member Cochin, Dated: 19 th December, 2022 Copy to: 1. The Appellant 2. The Respondent 3. The CIT(A) -NFA, Delhi 4. The CIT- 5. The DR, ITAT, Cochin 6. Guard File By Order //True Copy// Assistant Registrar ITAT, Cochin n.p.