Sh. Balraj Singh, Ludhiana V. ITO, Ludhiana

ITA 62/CHANDI/2012

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0035 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 18-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K DHIR SR DR
• Assessee Lawyers: ASHWANI KUMARCA
• Keywords: Capital asset
• Section: 54B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH SMC CHANDIGARH !', # BEFORE: SMT. DIVA SINGH, JM !./ ITA NO. 62/CHD/2012 #& ' (' / ASSESSMENT YEAR : 2007-08 SHRI BALRAJ SINGH, S/O SHRI GURCHARAN SINGH, VILLAGE-SAHNEWAL KHURD, LUDHIANA. VS THE ITO, WARD (V)1, LUDHIANA. ./ PAN NO: BCKPS9213C / APPELLANT / RESPONDENT / ASSESSEE BY : SHRI ASHWANI KUMAR,CA / REVENUE BY : SHRI A.K.DHIR, SR.DR ! ' # / DATE OF HEARING : 13.05.2019 $%&'() # / D ATE OF PRONOUNCEMENT : 29.05.2019 )*/ ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE ASSAILING THE CORRECTNESS OF THE ORDER DATED 11.11.2012 OF CIT(A) -2, LUDHIANA PERTAINING TO 2007-08 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS : 1. THAT ORDER PASSED US 250(6) OF THE INCOME TAX ACT. 1961 BY THE LD. CIT(A)-II, LUDHIANA IS AGAINST LAW AND FACTS ON THE FILE IN AS MUCH HE WAS NOT JUSTIFIED TO ARBITRARILY UPHOLD THE ACTION OF THE LD. ASSESSING OFFICER IN TREATING THE AGRICULTURAL LAND SOLD BY THE APPELLANT AS A CAPITAL ASSET LIABL E TO LONG TERM CAPITAL GAIN TAX. 2. THAT THE LD. CIT(A) WAS NOT JUSTIFIED TO UPHOLD THE ACTION OF THE LD. ASSESSING OFFICER IN COMPUTING THE LONG TERM CAPITAL GAIN AT RS. 6,58 ,776/- ON THE SALE OF AGRICULTURAL LAND BY THE APPELLANT NOT FALLING WITHIN THE DEFINI TION OF CAPITAL ASSET. 3. THAT THE LD. CIT(A) GRAVELY ERRED IN NOT ADJUDICATI NG THE GROUND RAISED BY THE APPELLANT WITH RESPECT TO THE INVESTMENT OF SALE PR OCEEDS OF AGRICULTURAL LAND IN THE PURCHASE OF AGRICULTURAL LAND AND THEREBY DENYING D EDUCTION U/S 54B. 2. THE LD. AR INVITING ATTENTION TO THE GROUNDS RAI SED SUBMITTED THAT IN THE FACTS OF THE PRESENT CASE, THE CIT(A) HAS NOT G IVEN ANY INDEPENDENT FINDING ON THE ISSUE WHETHER THE AGRICULTURAL LAND SOLD WAS A CAPITAL ASSET OR ITA 62/CHD/2012 A.Y. 2007-08 PAGE 2 OF 3 NOT AND HE HAS INSTEAD MERELY RELIED UPON THE FINDI NG GIVEN IN THE CASE OF SHRI GURCHARAN SINGH. FOR THE SAID PURPOSE, SPECIF IC ATTENTION WAS INVITED TO PARA 6 OF THE ORDER. FOR READY REFERENCE, SAME IS EXTRACTED HEREUNDER : 6. SINCE THE FACTS OF THE CASE IN HAND ARE SIMILAR WITH THE ABOVESAID CASE, THEREFORE, THE ADDITION MADE BY THE AO IN THIS CASE IS HEREBY ALSO CONFIRMED WITHIN VIEW OF THE FINDINGS PLACED IN THE CASE OF S HRI GURCHARAN SINGH. 3. INVITING ATTENTION TO THE ORDER DATED 04.09.2018 IN ITA 541/CHD/2011 PERTAINING TO THE VERY SAME ASSESSMENT YEAR, IT WAS SUBMITTED THAT THE ISSUE HAS BEEN REMANDED BY THE I TAT FOR BRINGING THE LEGAL HEIRS OF SHRI GURCHARAN SINGH ON RECORD. ACC ORDINGLY, IT WAS HIS SUBMISSION THAT SINCE THE ISSUE IS UNDECIDED IN THE LEAD ORDER ITSELF WHEREIN THE ASSESSING OFFICER AFTER COMPLETING THE NECESSAR Y FORMALITIES OF BRINGING THE LEGAL HEIRS ON RECORD HAS TO DECIDE AN IDENTICA L ISSUE IN VIEW THEREOF, IT WAS HIS PRAYER THAT THE MATTER MAY ALSO BE REMANDED BACK. 4. THE LD. SR.DR SHRI A.K.DHIR CONSIDERING THE RECO RD AND THE ORDER OF THE ITAT POSED NO OBJECTION TO THE REMAND OF THE IS SUE BACK TO THE AO. 5. ADDRESSING GROUND NO. 3 RAISED BY THE ASSESSEE I N THE PRESENT APPEAL, LD. AR INVITED ATTENTION TO COPY OF FORM NO. 35 FIL ED BEFORE THE BENCH SUBMITTED THAT THE SPECIFIC GRIEVANCE OF THE ASSESS EE WAS ALSO RAISED BEFORE THE CIT(A). FOR READY REFERENCE, THE RELEVANT EXTR ACT FROM THE IMPUGNED ORDER IS REPRODUCED HEREUNDER : 3. THAT HE WAS FURTHER NOT JUSTIFIED TO ARBITRAR ILY NEGATE THE CLAIM OF THE APPELLANT THAT THE SALE PROCEEDS OF THE AGRICULTURAL LAND HAD BEEN INVESTED IN THE PURCHASE OF AGRICULTURAL LAND WITHIN THE SPECIFIED LIME U/S 54B . 5.1 INVITING ATTENTION TO THE IMPUGNED ORDER, IT WAS HIS SUBMISSION THAT BY OVER-SIGHT, THE SAID GROUND REMAINED NON-ADJUDICATE D. IT WAS HIS SUBMISSION THAT SINCE THE SAID ISSUE WOULD ALSO DEP END UPON THE OUTCOME OF THE FIRST ISSUE, IT MAY ALSO BE REMANDED BACK TO THE AO. 6. THE LD. SR.DR CONSIDERING THE RECORD AND THE SPE CIFIC GROUND RAISED BEFORE THE CIT(A) AND BEFORE THE ITAT AGREED THAT T HE ISSUE MAY BE REMANDED TO THE AO. ITA 62/CHD/2012 A.Y. 2007-08 PAGE 3 OF 3 7. THE RELEVANT FACTS OF THE CASE AS SEEN FROM T HE RECORD ARE THAT THE ASSESSEE SOLD LAND WITHIN THE PERIPHERY OF LUDHIANA ON 19.05.2006 TO M/S MALHOTRA LAND DEVELOPERS PVT. LTD. THE ASSESSEE WA S REQUIRED TO IDENTIFY THE 6 KANAL 8 MARLA OF LAND SITUATED AT VILLAGE SAH NEWAL KHURD OUT OF WHICH ASSESSEE'S SHARE AMOUNTED TO RS. 6,95,373/-. THE A O FOR THE REASONS REFERRED TO IN THE ORDER CONCLUDED THAT IT WAS WITH IN THE 8 KILOMETERS LIMIT OF THE MUNICIPALITY WHICH POSITION WAS DISPUTED BY THE ASSESSEE. 7.1 THE ISSUE WAS CARRIED IN APPEAL BEFORE THE C IT(A).SINCE NO INDEPENDENT FINDING HAS BEEN GIVEN IN THE ORDER, TH E DECISION RENDERED IN THE CASE OF SH GURCHARAN SINGH TO WHOM ALSO PORTION OF THE SPECIFIC LAND BELONGED, VIEW OF THE AO WAS CONFIRMED. IT IS SEEN THAT IN THE LEAD ORDER, THE SPECIFIC FINDING IS INFLUX. ACCORDINGLY, IN THE LIGHT OF THE SUBMISSIONS OF THE PARTIES BEFORE THE BENCH CONSIDERING THE MATERI AL AVAILABLE ON RECORD, THE ISSUE RAISED IN GROUND NOS.1 AND 2 ARE RESTORED BACK TO THE FILE OF THE AO. 8. THE ISSUE RAISED IN GROUND NO. 3 IN THE PRE SENT PROCEEDINGS, IT IS SEEN WAS AGITATED BEFORE THE CIT(A) AND HAS NOT BEEN ADJ UDICATED UPON. THE ISSUE BEING RELEVANT IN THE LIGHT OF THE SUBMISSION S OF THE PARTIES, IS ALSO RESTORED BACK TO THE AO. SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 29.05.2019. SD/- ( !' ) (DIVA SINGH) # / JUDICIAL MEMBER + & *% + ,- . -(/ COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT -3. * * ! // CIT4. * * ! / ()/ THE CIT(A)5. - 23 4, * # *4), 67839/ DR, ITAT, CHANDIGARH 6. 38 :'/ GUARD FILE *% + ! / BY ORDER, ; / ASSISTANT REGISTRAR