The ACIT, Kottayam V. Sri.Santhosh George, Kottayam

ITA 520/COCH/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5336 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 5 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2018
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 12-06-2018
• Assessment Year: 2012-2013
• Appeal Filed On: 26-12-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A DHANARAJ
• Keywords: Capital asset
• Section: 2(14)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI , AM & GEORGE GEORGE K., JM I.T.A. NO.520/COCH/2016 ASSESSMENT YEAR : 2012 - 13 THE ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL, KOTTAYAM VS. SHRI SANTHOSH GEORGE KULANGARA KULANGARA HOUSE, MARANGATTUPILLY P.O., KOTTAYAM-686 635. [PAN:ADJPG 0660J] (REVENUE - APPELLANT) (ASSESSEE - RESPONDENT) REVENUE BY SHRI A. DHANARAJ, SR. DR ASSESSEE BY SHRI MATHEW JOSEPH, CA D ATE OF HEARING 12/06/ 2018 DATE OF PRONOUNCEMENT 12 / 0 6 /2018 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AG AINST THE ORDER OF THE CIT(A)- IV, KOCHI DATED 09/09/2016 AND PERTAINS TO THE ASSE SSMENT YEAR 2012-13. 2. THE REVENUE RAISED THE FOLLOWING GROUNDS: 1) THE LEARNED CIT(A) RELIED ON REVENUE RECORDS WHI CH WERE NOT PRODUCED BEFORE THE ASSESSING OFFICER. 2) THE LEARNED CIT(A) ERRED IN HOLDING PROPERTY AS AGRICULTURAL ON WHICH NO CAPITAL GAINS IS CHARGEABLE. I.T.A. NO520/C/2016 2 3) THE DESCRIPTION OF THE PROPERTY ATTACHED TO THE SALE DEED DOES NOT MENTION ANYTHING ON AGRICULTURAL ACTIVITY CARRIED O UT IN THE PROPERTY. THE PROPERTY, IN FACT, IS BY SIDE OF NH 49 ON THE EAST, GRASSLAND IN NORTH, STATE BOUNDARY IN WEST AND PRIVATE PROPERTY (CHARACTER UN KNOWN) IN SOUTH. 3. THE ASSESSEE SOLD A PIECE OF LAND ADMEASURING 5 ACRES AND 01 CENTS LOCATED AT BODINAYAKANUR TALUK, THENI DISTRICT, TAMIL NADU FOR A SALE CONSIDERATION OF RS.3,50,00,000/- TO M/S. SAFARI MULTIMEDIA PVT. LTD . ON 26/12/2011. THE ASSESSEE RECEIVED RS.35,00,000/- IN PLACE OF CASH S ALES CONSIDERATION. THE ASSESSEE IS A MANAGING DIRECTOR AND MAJORITY SHAREH OLDER OF M/S. SAFARI MULTIMEDIA PVT. LTD. THIS PIECE OF LAND IN QUESTION WAS CLAIMED TO HAVE BEEN PURCHASED BY THE ASSESSEE ON 18/12/2008 FOR CONSIDE RATION OF RS.4,96,000/- FROM ONE SHRI S.KANNADAS. THE ASSESSING OFFICER NO TICED ENORMOUS DIFFERENCE IN SALE AND PURCHASE VALUE OF LAND AS THE RESULTANT GA IN WAS CLAIMED AS EXEMPT FROM INCIDENCE OF CAPITAL GAINS TAX, BEING SALE OF AGRICULTURAL LAND NOT FALLING WITHIN THE MEANING OF CAPITAL ASSET UNDER THE PROVI SIONS OF SECTION 2(14) OF THE ACT. AFTER MAKING HIS ENQUIRIES, THE ASSESSING OFF ICER LEVIED TAX ON THE RESULTANT GAIN OF THIS LAND SALE TRANSACTION. 4. BEFORE THE CIT(A), THE ASSESSEE PRODUCED LAND RECORDS FROM THE GOVERNMENT AND ON THAT BASIS, HE OBSERVED THAT THE IMPUGNED LA ND IS AGRICULTURAL IN NATURE AND NOT LIABLE FOR INCOME TAX. I.T.A. NO520/C/2016 3 5. AGAINST THIS, THE REVENUE IS IN APPEAL BEFORE US. THE MAIN GRIEVANCE OF THE REVENUE IS THAT BEFORE THE CIT(A), THE ASSESSEE PRO DUCED NEW DOCUMENTS IN THE FORM OF LAND REVENUE TAX RECEIPTS AND CERTIFICATE O F ENCUMBRANCE ON PROPERTY, EXPLAINING THE NATURE OF THE LAND AND ON THAT BASIS , THE CIT(A) DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE WITHOUT CONFRONTING THE S AME TO THE ASSESSING OFFICER. HENCE, THE LD. DR SUBMITTED THAT THE ISSUE MAY BE R EMITTED TO THE FILE OF THE ASSESSING OFFICER FOR FRESH CONSIDERATION OF THE DO CUMENTS PRODUCED BEFORE THE CIT(A). 6. THE LD. AR RELIED ON THE ORDER OF THE CIT(A). 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RECORD. ADMITTEDLY, THE DOCUMENTS REFERRED BY THE LD. DR ARE FRESH DOCUMENT S FILED BY THE ASSESSEE BEFORE THE CIT(A) AND THE ASSESSING OFFICER HAD NO OCCASION TO CONSIDER THEM. HENCE, IN THE INTEREST OF JUSTICE, WE REMIT THIS IS SUE TO THE FILE OF THE ASSESSING OFFICER FOR FRESH CONSIDERATION OF THE ISSUE. AT TH IS POINT OF TIME, WE REFRAIN FROM GOING INTO ANY OTHER GROUNDS RAISED BY THE REVENUE WHICH SHALL BE DECIDED BY THE ASSESSING OFFICER AFTER FRESH CONSIDERATION OF THE ABOVE DOCUMENTS. I.T.A. NO520/C/2016 4 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THI S 12 TH JUNE, 2018. SD/- SD/- ( GEORGE GEORGE K.) (CHAN DRA POOJARI) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: DATED: 12 TH JUNE, 2018 GJ COPY TO: 1. SHRI SANTHOSH GEORGE KULANGARA KULANGARA HOUSE, MARANGATTUPILLY P.O., KOTTAYAM-686 635. 2. THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRA L, KOTTAYAM. 3. THE COMMISSIONER OF INCOME-TAX(APPEALS)-IV, KOCH I 4. THE COMMISSIONER OF INCOME-TAX, CENTRAL, KOCHI 5. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 6. GUARD FILE. BY ORDER (ASSISTANT REGISTRA R) I.T.A.T. , COCHIN