Emrald Herbs and Plants Private Limited, Chennai V. DCIT,CPC, BENGALURU

ITA 594/CHNY/2021

AI Insights

The case involves Emerald Herbs and Plants Private Limited, which appealed against the order of the Commissioner of Income Tax (Appeals) regarding the assessment year 2019-20. The company, engaged in the plantation of herbal and medical horticultural products, filed a return claiming its entire income as agricultural income, which is exempt from tax. Initially, this claim was rejected, and the income was added to the total income of the assessee. An application under section 154 of the Income Tax Act was filed to correct a clerical error in showing agricultural income as expenditure, which was also rejected. The Income-Tax Appellate Tribunal, Chennai, after hearing the arguments, decided to remit the case back to the Assessing Officer for a fresh examination of the issue.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135129 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Next Hearing Date: 09-04-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 20-12-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 154; 143(1)

Judgement Text

आयकर अपीलीय अिधकरण, ‘सी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI ŵी वी. दुगाŊ राव, Ɋाियक सद˟ एवं ŵी मनोज कु मार अŤवाल, लेखा सद˟ के समƗ । Before Shri V. Durga Rao, Judicial Member & Shri Manoj Kumar Aggarwal, Accountant Member आयकर अपील सं./I.T.A. No.594/Chny/2021 िनधाŊरण वषŊ/Assessment Year: 2019-20 Emerald Herbs and Plants Private Limited, No. 3, KRV House, Nineth Lane, Shastri Nagar, Adyar, Chennai 600 020 [PAN:AABCE3590K] Vs. The Deputy Commissioner of Income Tax, Corporate Ward 2(1), Chennai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri P.M. Kathir, Advocate ŮȑथŎ की ओर से/Respondent by : Shri P. Sajit Kumar, JCIT सुनवाई की तारीख/ Date of hearing : 10.04.2023 घोषणा की तारीख /Date of Pronouncement : 21.04.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), (National Faceless Appeal Centre) [NFAC], Delhi dated 30.11.2021 relevant to the assessment year 2019-20. 2. Facts are, in brief, that the assessee company is in the business of plantation of herbal and medical horticultural products and filed its return of income for the assessment year 2019-20 showing total income of ₹. I.T.A. No. 594/Chny/21 2 NIL on 13.10.2019 by claiming the entire income as exempt for the reason that the income is an agricultural income. The return filed by the assessee was processed under section 143(1) of the Income Tax Act, 1961 [“Act” in short] and the entire claim of the assessee was added to the total income of the assessee. The assessee filed an application under section 154 of the Act on 16.02.2021. The said application under section 154 of the Act was disposed off by the Assessing Officer vide order dated 03.03.2021 and the total income was computed at ₹.9,76,579/- as against NIL income as per returned filed by the assessee. On appeal against the order under section 154 of the Act, after considering the submissions of the assessee, the ld. CIT(A) dismissed the ground raised by the assessee. 3. When the appeal was taken up for hearing, the ld. Counsel for the assessee has submitted that the assessee filed its return of income and in its computation, in the Schedule BP Col. No. 1 profit before tax as per profit and loss account, it has shown ₹.9,76,549/- and also in Col. No. 5(c) same figure was shown as agricultural income exempt. However, in Schedule EI – details of exempt income, in Sl.No. 3(ii), the assessee has inadvertently shown expenditure incurred on agriculture at ₹.9,76,549/- and submitted that this was mistakenly shown as expenditure and it is I.T.A. No. 594/Chny/21 3 actually exempt income, thereby, the CPC, Bengaluru added it as income. Therefore, the ld. Counsel for the assessee prayed that the issued may be remitted back to the Assessing Officer for verification. 4. On the other hand, the ld. DR has fairly conceded that the issue may be remitted back to the regular Assessing Officer. In view of the above, the entire issue is remitted back to the file of the Assessing Officer to examine and decide the issue de novo in accordance with law. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 21 st April, 2023 at Chennai. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 21.04.2023 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ (अपील)/CIT(A), 4. आयकर आयुƅ/CIT, 5. िवभागीय Ůितिनिध/DR & 6. गाडŊ फाईल/GF.