Nusun Genetic Research Limited, Hyderabad, Hyderabad V. DCIT, Circle-16(1), Hyderabad, Hyderabad

ITA 700/HYD/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 6828 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 13-01-2021
• Assessment Year: 2012-2013
• Appeal Filed On: 20-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Rectification of order
• Section: 143(3); 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NOS. 700 & 701/HYD/2017 ASSESSMENT YEAR: 2012-13 M/S.NUSUN GENETIC RESEARCH LIMITED, HYDERABAD [PAN: AABCN5864F] VS DCIT, CIRCLE-16(1), HYDERABAD ( ASSESSEE/ APPELLANT) (RESPONDENT) C.O. NO. 06/HYD/2019 (IN ITA NO.700/HYD/2017) ASSESSMENT YEAR: 2012-13 DCIT, CIRCLE-16(1), HYDERABAD VS M/S.NUSUN GENETIC RESEARCH LIMITED, HYDERABAD [PAN: AABCN5864F] (CROSS - OBJECTOR /RESPONDENT ) ( ASSESSEE/APPELLANT ) FOR ASSESSEE : SHRI P.MURALI MOHANA RAO, AR FOR REVENUE : SHRI Y.V.S.T.SAI, CIT-DR DATE OF HEARING : 13-01-2021 DATE OF PRONOUNCEMENT : 27-01-2021 O R D E R PER BENCH : THESE TWO ASSESSEES APPEALS FOR AY.2012-13 ARISE F ROM THE CIT(A)-4, HYDERABADS SEPARATE ORDERS DATED 20-01- 2017 & 23-01-2017 PASSED IN APPEAL NO.0332 & 0070/DCIT, CI RCLE- 16(1)/15-16/CIT(A)-4 / HYD / 2016-17 FOLLOWED BY RE VENUES CROSS OBJECTIONS 06/HYD/2019 IN FORMER CASE INVOLVIN G, ITA NO. 700 & 701/HYD/2017 C.O.NO. 06/HYD/2019 :- 2 -: PROCEEDINGS U/S.154 & 143(3) OF THE INCOME TAX ACT, 1 961 [IN SHORT, THE ACT] ; RESPECTIVELY. HEARD BOTH THE PARTIES. CASE FILES PERUSED. 2. AS IT HAS ALREADY BEEN INDICATED IN THE OPENING PARAGRAPH, THESE TWO ASSESSEES APPEALS INVOLVE SECT ION 143(3) ASSESSMENT AS WELL AS SECTION 154 PROCEEDINGS FOLLOWE D BY THE REVENUES CROSS OBJECTION IN THE FORMER APPEAL. 3. A PERUSAL OF THE CIT(A)S ORDER DT.23-01-2017 DEAL ING WITH ASSESSEES APPEAL IN ITA NO.701/HYD/2017 IN SE CTION 143(3) PROCEEDINGS REVEALS THAT HE HAS TREATED THE ASSE SSMENT IN QUESTION DEEMED TO HAVE BEEN ANNULLED IN VIEW OF TH E ASSESSING OFFICERS SUBSEQUENT RECTIFICATION ORDER DT. 24-09- 2015. THIS IS THE PRECISE REASON FOR THE REVENUE TO FI LE ITS CROSS OBJECTIONS C.O.NO.06/HYD/2019. 4. BOTH THE LEARNED REPRESENTATIVES APPEARING AT ASSESSE ES REVENUES BEHEST ARE VERY MUCH AD IDEM DURING THE COURSE OF HEARING THAT NEITHER OF THE LOWER APPELLATE AUTHORITY S ORDER PASSED U/S.143(3) OR 154 HAS DEALT WITH THE MAIN SUBST ANTIVE ISSUE OF THE TAXPAYERS AGRICULTURAL INCOME CLAIM QUA ITS SEED PRODUCTION BUSINESS. MR.RAO ALSO QUOTED CASE LAW CIT VS. NAMDHARI SEEDS (P) LTD., (2011) [16 TAXMANN.COM 83] ( KAR.) AND SIMILAR OTHER JUDICIAL PRECEDENTS THAT - INCOME DERIVED FROM SEED PRODUCTION ACTIVITY ALSO AMOUNTS TO AGRIC ULTURAL INCOME ENTITLED FOR SEC.10(1) EXEMPTION . ITA NO. 700 & 701/HYD/2017 C.O.NO. 06/HYD/2019 :- 3 -: 5. LEARNED CIT-DR, ON THE OTHER HAND, HAS ALSO REFER RED TO HIS WRITTEN SUBMISSIONS THAT THE FOLLOWING CASE LAW MAK ES IT CLEAR THAT SUCH AN INCOME IS NOT AGRICULTURAL INCOME I. DECISION OF THE HON'BLE SUPREME COURT OF INDIA IN THE CASE OF K.LAKSHMANAN & CO (2000) [108 TAXMAN 167] (SC), FEBRUARY 4, 1998; II. DECISION OF HON'BLE ITAT DELHI BENCH F IN THE CASE OF PIONEER OVERSEAS CORPORATION (2010) [35 SOT 467] (DELHI), NOVEMBER 30, 2009; III. DECISION OF HON'BLE ITAT DELHI BENCH F IN THE CASE OF P.H.I. SEEDS (P) LTD., (2018) [96 TAXMANN.COM 493] (D ELHI -TRIB), DECEMBER 18, 2017; IV. DECISION OF HON'BLE HIGH COURT OF KARNATAKA IN THE CAS E OF NAMDHARI SEEDS (P) LTD., (2011) [16 TAXMANN.COM 8 3] (KAR), OCTOBER 24, 2011; 6. BE THAT AS IT MAY, WE WISH TO REPEAT HERE THAT WE ARE Y ET TO SEE THE CIT(A)S DETAILED ADJUDICATION ON THIS ISSUE IN EITHER OF THE TWIN ROUNDS OF PROCEEDINGS. WE THEREFORE HOLD THAT THE CIT(A) HAS ERRED IN TREATING THE ASSESSEES SECTION 14 3(3) REGULAR ASSESSMENT AS DEEMED TO HAVE ANNULLED U/S.154 OF THE ACT SINCE THE LATTER PROVISION FORMS PART OF THE FORMER A ND NOT VICE-VERSA AND RESTORE THE INSTANT LIS BACK TO HIM FOR HIS APPROPRIATE AFRESH ADJUDICATION AS PER LAW AS CONTEMPL ATED U/S.250(6) OF THE ACT REQUIRING FRAMING OF POINTS OF DETERMINATION FOLLOWED BY A DETAILED DISCUSSION. THE A SSESSEES BOTH APPEALS ITA NOS.700/HYD/2017 & 701/HYD/2017 STAN D REMANDED TO THE CIT(A) THEREFORE. THE REVENUES CROSS ITA NO. 700 & 701/HYD/2017 C.O.NO. 06/HYD/2019 :- 4 -: OBJECTION IN C.O.NO.06/HYD/2019 IN ITA NO.700/HYD/2 017 SUFFERS FROM DELAY OF 530 DAYS AS ATTRIBUTABLE TO PROCE DURAL AND OTHER OFFICIAL APPROVALS IS CONDONED ON ACCOUNT O F CIRCUMSTANCES BEYOND ITS CONTROL AND AS PER ASSESSEES CONCESSION GIVEN BEFORE US. WE ALSO KEEP IN MIND TH E FACT THAT THE ASSESSEES MAIN APPEAL ITSELF HAS BEEN REMANDED TO THE CIT(A). THIS CROSS OBJECTION ALSO FOLLOWS SUIT. 7. THESE TWO ASSESSEES APPEALS ITA NOS.700 & 701/HYD/2017 AS WELL AS REVENUES C.O.NO.06/HYD/201 9 ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERM S. A COPY OF THIS COMMON ORDER BE PLACED IN THE RESPECTIVE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH JANUARY, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.GO DARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 27-01-2021 TNMM ITA NO. 700 & 701/HYD/2017 C.O.NO. 06/HYD/2019 :- 5 -: COPY TO : 1.M/S.NUSUN GENETIC RESEARCH LIMITED, C/O. P. MURAL I & CO., CHARTERED ACCOUNTANTS, 6-3-655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD. 2.DCIT, CIRCLE-16(1), HYDERABAD. 3.CIT(APPEALS)-4, HYDERABAD. 4.PR.CIT-4, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.