Sri Meddineni Venkateswara Rao, V. The ITO, Ward-1(3), Visakhapatnam, Visakhapatnam

ITA 70/VIZ/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94096 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 year(s) 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 22-07-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 12-03-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D KOMALI KRISHNA
• Keywords: Capital asset

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, VISHAKHAPATNAM BENCH, VISHAKHAPATNAM BEFORE SHRI D.MANMOHAN, VICE PRESIDENT AND SHRI B.R.BASKARAN , ACCOUNTA NT MEMBE R I .T .A. NO.70 /VIZ /20 12 A SSESSMENT YEAR : 2006 - 07 MEDDINENI VENKATESWARA RAO,C/O - BETHINA HANUMANTHA RAO, S/O. W.G.DIST. MANDAPAKA, TANUKU RURAL MANDAL, W.G. DIST. VS. ITO, WARD - 1(3), VISAKHAPATNAM PAN/GIR NO. : ALCPM 6280 H APPELLANT ) .. RESPONDENT ) APPELLANT BY : NONE RESPONDENT BY : D KO MALI KRISHNA DATE OF HEARING : 22 /7 /2015 DATE OF PRONOUNCEMENT : 22 /7 /2015 O R D E R PER B.R.BASKARAN, AM : THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 16.11.2011 OF THE LD CIT(A) - VISAKHAPATNAN AND IT RELATES TO THE ASSESSMENT YEAR 2006 - 07. 2. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF THE LD CIT(A) IN CONFIRMING THE ASSESSMENT OF CAPITAL GAIN ARISING ON SALE OF LAND WHICH WAS CLAIMED BY THE ASSESSEE AS AGRICULTURAL LAND. 2 I.T.A. NO.70/VIZ/2012 A SSESSMENT YEAR : 2006 - 07 3. N ONE APPEARED ON BEHALF OF THE ASSESSEE EVEN THOUGH THE NOTICE SENT TO THE ASSESSEE HAS BEEN DULY ACKNOWLEDGED. HENCE, WE PROCEED TO DISPOSE OF THE APPEAL EXPARTE, WITHOUT THE PRESENCE OF THE ASSESSEE. 3. WE HEARD THE LD DEPARTMENTAL REPRESENTATIVE AND P ERUSED THE RECORDS. THE FACTS RELATING TO THE ISSUE ARE STATED IN BRIEF. THE ASSESSEE IS A NON - RESIDENT INDIAN. DURING THE YEAR UNDER CONSIDERATION, HE FILED HIS RETURN OF INCOME DECLARING TOTAL INCOME AT NIL. THE ASSESSING OFFICER OBSERVED THAT THE AS SESSEE HAS SOLD LAND LOCATED AT RISHI KONDA VILLAGE UNDER YENDADA PANCHAYAT ON 24.3.2006 FOR A CONSIDERATION OF RS.2,38,50,000/ - . THE ASSESSEE CLAIMED THE SAME TO BE AN AGRICULTURAL LAND FALLING OUTSIDE THE MUNICIPAL LIMITS AND, ACCORDINGLY, CLAIMED THAT TH E GAIN ARISING ON SALE OF LAND A S NOT TAXABLE UNDER THE INCOME TAX ACT. THE ASSESSING OFFICER DID NOT ACCEPT THE CONTENTIONS OF THE ASSESSEE AND, ACCORDINGLY ASSESSED THE GAIN ARISING ON SALE OF LAND AS CAPITAL GAIN. IN THE FIRST APPEAL, THE LD CIT(A) CONFIRMED THE SAME AND HENCE, THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 4. WE HAVE CAREFULLY GONE THROUGH THE ORDER PASSED BY THE LD CIT(A) AND NOTICED THAT THE LD CIT(A) HAS GIVEN THE FOLLOWING FINDINGS AFTER ADDRESSING THE VARIOUS CONTENTIONS OF TH E ASSESSEE IN A DETAILED MANNER: A) SAID LAND IS NEVER USED FOR AGRICULTURAL PURPOSES BY THE ASSESSEE; 3 I.T.A. NO.70/VIZ/2012 A SSESSMENT YEAR : 2006 - 07 B) IT FALLS WITHIN THE MUNICIPAL LIMITS AS ON THE DATE OF SALE AND HENCE IS A CAPITAL ASSET WITHIN THE MEANING OF SECTION 2(14)(IIIA); C) THE INCOME DER IVED THERE FROM IS EXCLUDED FROM THE DEFINITION OF AGRICULTURAL INCOME BY EXPLANATION 1 TO SECTION 2(1A). BEFORE US, THE ASSESSEE DID NOT FILE ANY MATERIAL TO CONTROVERT THE FINDINGS GIVEN BY THE LD CIT(A). UNDER THESE CIRCUMSTANCES, WE HAVE NO OTHER OPTION BUT TO CONFIRM THE ORDER PASSED BY THE LD CIT(A) AND WE UPHOLD THE SAME. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 /7 /2015 . SD/ - SD/ - (D.MANMOHAN ) ( B.R.BASKARAN) VICE PRESIDENT ACCOUNTANT MEMBER DATED 22 / 7 /2015 B.K.PARIDA , SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT : MEDDINENI VENKATESWARA RAO,C/O - BETHINA HANUMANTHA RAO, S/O. W.G.DIST. MANDAPAKA, TANUKU RURAL MANDAL, W.G. DIST. 2. THE RESPONDENT: ITO, WARD - 1(3), VISAKHAPATNAM 3. THE CIT(A) - VISHAKHAPATNAM 4. CIT - 1, , VISHAKHAPATNAM 5. DR, ITAT, VISHAKHAPATNAM 6. / GUARD FILE. BY ORDER, //TRUE COPY// ASST. REGISTRAR, ITAT, VISHAKHAPATNAM