Dy.CIT, Circle-2(1), Hyderabad V. Sri Kasani Gnaneshwar, Hyderabad

ITA 8/HYD/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 77865 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 02-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K HARITA
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Reopening of assessment
• Section: 147; 148; 144; 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO. 8/HYD/2014 ASSESSMENT YEAR 2004-05 THE DEPUTY CIT CIRCLE-2(1) HYDERABAD VS. SRI KASANI GNANESHWAR HYDERABAD PAN: AAUPK1302K APPELLANT RESPONDENT APPELLANT BY: SMT. K. HARITA RESPONDENT BY: SRI K.A. SAI PRASAD DATE OF HEARING: 2 3 .04.2014 DATE OF PRONOUNCEMENT: 29 .04.2014 ORDER PER CHANDRA POOJARI, A.M.: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-III, HYDERABAD DATED 8.10.2013. 2. BRIEF FACTS OF THE CASE ARE THAT THERE IS ONLY ON I SSUE IN APPEAL AND THAT RELATES TO THE IMPOSITION OF PENALT Y U/S. 271(1)(C) OF INCOME-TAX ACT, 1961. THE LEARNED AR SUBMITTED THAT THE QUANTUM APPEAL IN THIS CASE HAD BEEN ALLOW ED BY THIS TRIBUNAL IN FAVOUR OF THE ASSESSEE AND THE ADDITION IN TOTALITY HAD BEEN DELETED. A COPY OF THE ORDER OF THE TRIBU NAL IN ITA NO. 1407/HYD/2010 AND OTHERS WAS PLACED ON RECORD B Y THE ASSESSEE. THE OPERATIVE PART OF THIS ORDER IS AS U NDER: '56. THE MAIN ISSUE IN THIS APPEAL RELATES TO THE REOPENING OF ASSESSMENT UNDER S. 147 OF THE INCOME TAX ACT. IN THIS CASE, RE-OPENING OF ASSESSMENT WAS MAD E TO 2 ITA NO. 8/HYD/2014 SRI KASANI GNANESHWAR ================== BRING TO TAX THE INCOME RECEIVED BY THE ASSESSEE ON SALE OF LAND, BY TREATING THE SAME AS INCOME ARISING FRO M BUSINESS, AS AGAINST THE DISCLOSURE OF THE SAME BY THE ASSESSEE AS AGRICULTURAL INCOME EXEMPT FROM TAX, SI NCE THE LANDS IN QUESTION ARE OF AGRICULTURAL NATURE. 57. AS WE HAVE IN THE EARLIER PART OF THIS ORDER, W HILE DEALING WITH THE APPEAL OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2003-04, HAVE HELD THAT THE NATURE OF LAND SOLD IS OF AGRICULTURAL NATURE, AND HENCE THE INCOME DERIVED ON THE SALE OF SUCH LAND HAVE TO BE TREATED AS AGRICULTURAL INCOME EXEMPT UNDER S. 10 O F THE ACT, WE FIND THAT THE REASON GIVEN BY THE ASSESSING OFFICER FOR REOPENING THE ASSESSMENT HAS TO BE HELD TO BE NOT VALID. CONSEQUENTLY, THE REOPENING OF THE ASSESSMENT HAS TO BE HELD TO BE NEITHER LEGAL NOR V ALID AND ACCORDINGLY THE ASSESSMENT MADE UNDER S. 144 READ WITH S. 148 OF THE ACT, GIVING RISE TO THE PRE SENT APPELLATE PROCEEDINGS, HAS TO BE CANCELLED. WE DO S O ACCORDINGLY, AND ALLOW THE GROUNDS OF THE ASSESSEE ON THAT COUNT. 58. IN THE RESULT, ASSESSEES APPEAL ITA NO. 1407/ HYD/2010 FOR ASSESSMENT YEAR 2004-05, IS ALLOWED.' 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. THE CIT(A) IS JUSTIFIED IN DEL ETING THE PENALTY AS THE QUANTUM ADDITION IS ALREADY DELETED BY THIS TRIBUNAL VIDE ORDER DATED 19.12.2012 IN ITA NO. 140 7/HYD/ 2010 AND OTHERS IN ASSESSEES OWN CASE AND THERE IS NO SUSTENANCE OF QUANTUM ADDITION AND BEING SO PENALTY CANNOT BE SUSTAINED. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 29 TH APRIL, 2014 SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED THE 29 TH APRIL, 2014 TPRAO 3 ITA NO. 8/HYD/2014 SRI KASANI GNANESHWAR ================== COPY TO: 1. THE DEPUTY CIT, CIRCLE-2(1), 8 TH FLOOR, B-BLOCK, IT TOWERS, AC GUARDS, HYDERABAD 2. SRI KASANI GNANESHWAR, 7-1-414/17-B, SRINIVASA COLO NY EAST, AMEERPET, HYDERABAD. 3. THE CIT(A)-III, HYDERABAD. 4. THE CIT-II, HYDERABAD. 5. THE DR, A BENCH, ITAT, HYDERABAD.