ACIT, Hyderabad V. M/s Swagath Seeds Pvt. Ltd., Hyderabad

ITA 910/HYD/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 6472 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2002-2003
• Appeal Filed On: 14-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K V N CHARYA
• Assessee Lawyers: K A SAI PRASAD

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMEBR ITA NO.910/HYD/10 : ASSTT. YE AR 2002-03 ASST COMMISSIONER OF INCOME- TAX, CIRCLE 3(3), HYDERABAD V/S. M/S. SWAGATH SEEDS PVT. LTD., HYDERABAD. ( PAN AAECS 9708 J) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.V.N.CHARYA RESPONDENT BY : SHRI K.A.SAI PRASAD O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL OF THE REVENUE FOR THE ASSESSMENT YEAR 200 2- 03 IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOM E-TAX (APPEALS). 2. GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER- '1. THE ORDER OF THE CIT(A) IS ERRONEOUS BOTH ON F ACTS AND CIRCUMSTANCES OF THE CASE. 2. THE CIT(A) IS NOT JUSTIFIED IN TREATING THE SALE PR OCEEDS OF FOUNDATION SEEDS AS AGRICULTURAL INCOME. ' 3. LEARNED DEPARTMENTAL REPRESENTATIVE HAS RELIED ON THE ORDER OF THE ASSESSING OFFICER. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE IN THIS APPEAL OF THE REVENUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISIONS OF THE HYDERABAD BENCHES OF ITA NO910./HYD/10 M/S.SWAGATH SEEDS PVT. LTD., HYDERABAD . 2 THE TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEARS 2 001- 02(IN ITA NO.943/HYD/04 DATED 18.1.2008), 2003-04(IN ITA NO.191/HYD/2008 DATED 16.5.2008), AND 2005-06(IN ITA NO.220/HYD/2009 DATED 25.5.2009). HE SUBMITTED THAT T HE HYDERABAD BENCHES OF THE TRIBUNAL IN THE CASES OF THE ASS ESSEE FOR THE EARLIER AS WELL AS SUBSEQUENT ASSESSMENT YEARS HELD THAT T HE INCOME FROM THE SALE OF BASIC FOUNDATION SEED WAS AGRICULTURAL INCOME AND THEREFORE EXEMPT FROM TAX. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THA T THE ISSUE IN THE GROUNDS OF APPEAL OF THE REVENUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISIONS OF THE HYDERABAD BENCHES OF T HE TRIBUNAL IN ASSESSEE'S OWN CASES FOR THE ASSESSMENT YEARS REFER RED TO SUPRA. THIS TRIBUNAL BY THE DECISIONS IN ASSESSEE'S OWN CAS ES, REFERRED TO ABOVE HAS HELD THAT THE ASSESSEE IS ENTITLED TO EXEM PTION UNDER S.10(1) OF THE ACT ONLY IN RESPECT OF INCOME FROM SALE O F BASIC FOUNDATION SEEDS WHICH ARE GENERATED OUT OF CULTIVATION MADE BY THE ASSESSEE. WE FIND THAT THE CIT(A) IN THE IMPUGNED ORDE R HAS FOLLOWED THE DECISIONS OF THE TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEARS 2001-02 AND 2003-04 AND HAS DIRECTED THE ASSESSING OFFICER TO ALLOW THE EXEMPTION UNDER S.10(1) O F THE ACT TO THE ASSESSEE WITH REGARD TO SALE OF FOUNDATION SEEDS. THER E BEING NO MISTAKE IN THE ORDER OF THE CIT(A) ON THIS ISSUE, AND THE ISSUE BEING COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISIONS OF THE TRIBUNAL IN ASSESSEE'S OWN CASES FOR A NUMBER OF ASSESSMENT YEARS, WE HOLD T HAT THE ASSESSEE IS ENTITLED TO EXEMPTION UNDER S.10(1) OF T HE ACT ONLY IN RESPECT OF SALE OF BASIC FOUNDATION SEEDS WHICH ARE GENERAT ED OUT OF ITA NO910./HYD/10 M/S.SWAGATH SEEDS PVT. LTD., HYDERABAD . 3 CULTIVATION MADE BY THE ASSESSEE. CONSEQUENTLY, GROUNDS O F THE REVENUE ARE REJECTED. 5. IN THE RESULT, REVENUE'S APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 6.8.2010 SD/- SD/- (CHANDRA POOJARI) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 6TH AUGUST, 2010 COPY FORWARDED TO: 1. M/S. SWAGATH SEEDS PVT. LTD., 3-6-290/21, SADANA BUILDING, HYDERGUDA, HYDERABAD. 2. ASST. COMMISSIONER OF INCOME TAX, CIRCLE 3(3), HYDER ABAD. 3. COMMISSIONER OF INCOME-TAX(APPEALS-IV, HYDERABAD. 4. COMMISSIONER OF INCOME-TAX III, HYDERABAD 5. THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S. 1. 19.7.2010 2. 3. 4. 19.7.2010 5. 6. 7. 8. 9. ITA NO910./HYD/10 M/S.SWAGATH SEEDS PVT. LTD., HYDERABAD . 4