DCIT,, Pune v. Shri Shantaram R. Bhande, Pune

ITA 1001/PUN/2010 | 2005-2006
Pronouncement Date: 30-11-2011 | Result: Dismissed

Appeal Details

RSA Number 100124514 RSA 2010
Assessee PAN ALHPB4548E
Bench Pune
Appeal Number ITA 1001/PUN/2010
Duration Of Justice 1 year(s) 4 month(s) 18 day(s)
Appellant DCIT,, Pune
Respondent Shri Shantaram R. Bhande, Pune
Appeal Type Income Tax Appeal
Pronouncement Date 30-11-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 30-11-2011
Assessment Year 2005-2006
Appeal Filed On 12-07-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV JUDICIAL MEMBER AND SHRI D. KARUNAKARA RAO ACCOUNTANT MEMBER I.T.A. NO. 1001 AND 1002/PN/2010 : A.Y. 2005-06 DY. CIT CIR. 8 PUNE APPELLANT VS. SHRI SHANTARAM R. BHANDE PIMPLE NILAKH PUNE PAN ALHPB 4548 E RESPONDENT APPELLANT BY: MS. NEERA MALHOTRA RESPONDENT BY: NONE DATE OF HEARING: 1-11-2011 DATE OF PRONOUNCEMENT : ___11-2011 ORDER PER SHAILENDRA KUMAR YADAV JM BOTH THESE APPEALS PERTAIN TO THE SAME ASSESSEE. SO THEY ARE BEING DISPOSED OFF BY THIS CONSOLIDATED OR DER FOR THE SAKE OF CONVENIENCE. ITA NO. 1002/PN/2010 FOR A.Y. 2005-06 2. IN THIS APPEAL THE REVENUE HAS CHALLENGED THE O RDER OF THE CIT(A)-V PUNE DATED 31-3-2010 IN DELETING THE A DDITION MADE ON ACCOUNT OF LONG TERM CAPITAL GAIN. THE ASS ESSING OFFICER RECEIVED INFORMATION THROUGH ANNUAL INFORMA TION REPORT THAT THE ASSESSEE HAD SOLD PROPERTY FOR A CONSIDERATION OF RS. 70 00 000/- DURING THE YEAR UN DER CONSIDERATION. SINCE THERE WAS NO RESPONSE FROM TH E SIDE OF THE ASSESSEE IN PURSUANCE TO NOTICE ISSUED U/S 1 42(1) OF 2 ITA NO. 1001 & 1002/PN/2010 SHANTARAM R BHANDE A.Y. 2005-06 THE ACT THE ASSESSING OFFICER COMPLETED THE ASSESS MENT BRINGING TO TAX THE ENTIRE SALE CONSIDERATION OF RS . 70 00 000/- AS LONG TERM CAPITAL GAIN HOLDING THE C OST OF ACQUISITION TO BE NIL. ON APPEAL THE CIT(A) DELETE D THE SAME WHICH HAS BEEN OPPOSED BY THE REVENUE BEFORE U S. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. SO WE D ECIDE THESE APPEALS AFTER HEARING THE LEARNED DR AND PERU SING THE MATERIAL ON RECORD. WE FIND THAT THE ASSESSEE A ND HIS BROTHER ARE THE OWNERS OF AGRICULTURAL LANDS SITUA TED AT KUNJIRWADI THEUR WHICH WAS PURCHASED IN THE YEAR 1987 AND 1994 FOR AGRICULTURAL PURPOSES. THE SAID LAND IS LOCATED MORE THAN 8 KMS. AWAY FROM THE LOCAL LIMITS OF ANY MUNICIPALITY OR CANTONMENT BOARD. THE LAND IN QUES TION HAS BEEN USED FOR AGRICULTURAL PURPOSES. THE ASSESS EE SUBMITTED THAT THE SALE OF AGRICULTURAL LAND IS NOT TAXABLE IN VIEW OF SECTION 2(14)(III)(B) OF THE ACT. AT TH E INITIAL STAGE THE CIT(A) REMANDED THE CASE TO THE ASSESSIN G OFFICER TO CORROBORATE THE SUBMISSIONS MADE ON BEHA LF OF THE ASSESSEE. THE ASSESSING OFFICER IN HIS REMAND REPORT REPORTED THAT THE LAND IN QUESTION WAS WITHIN THE D ISTANCE OF LESS THAN 8 KMS FROM THE LOCAL LIMITS OF PCMC/PMC/PUNE CANTONMENT. IN THIS VIEW OF THE MATT ER THOUGH THE ASSESSEES SHARE OF LAND IS 50% ONLY BUT THE ASSESSING OFFICER HAS ADDED THE ENTIRE AMOUNT OF CONSIDERATION IN THE ASSESSEES INCOME WITHOUT GIVI NG DEDUCTION ON ACCOUNT OF INDEXED COST OF ACQUISITION . THE MAIN ISSUE INVOLVED IN THIS APPEAL IS WHETHER THE L AND IS OR IS NOT LOCATED WITHIN 8 KMS OF THE MUNICIPAL LI MITS OF THE NEAREST CORPORATION. WE FIND THAT DURING THE AP PELLATE PROCEEDINGS BEFORE THE CIT(A) THE ASSESSEE SUBMITT ED A CERTIFICATE ISSUED BY THE TALATHI KUNJIRWADI THEU R WHICH STATED THAT THE VILLAGE IS LOCATED ABOUT 15 KMS FRO M 3 ITA NO. 1001 & 1002/PN/2010 SHANTARAM R BHANDE A.Y. 2005-06 MUNICIPAL LIMITS. UNDER THE CIRCUMSTANCES WE HOLD THAT THE CIT(A) WAS JUSTIFIED IN HOLDING THAT THE AGRICU LTURAL LAND IS LOCATED MORE THAN 8 KMS. AWAY FROM ANY MUNI CIPAL LIMITS. WE ACCORDINGLY UPHOLD THE ORDER OF THE CIT (A) ON THIS ISSUE AND DISMISS THE APPEAL OF THE REVENUE. ITA NO. 1001/PN/2010 FOR A.Y. 2005-06 4. IN THIS APPEAL THE REVENUE HAS CHALLENGED THE O RDER OF THE CIT(A)-V DATED 31-3-2010 IN DELETING THE PEN ALTY LEVIED BY THE ASSESSING OFFICER U/S 271(1)(C) OF TH E ACT FOR A.Y. 2005-06. WHILE DEALING WITH THE APPEAL OF THE REVENUE WITH REGARDS TO LONG TERM CAPITAL GAIN ARIS ING OUT OF SALE OF AGRICULTURAL LAND FOR THE YEAR UNDER CONSIDERATION WE HAVE UPHELD THE ASSESSEES CONTEN TION THAT NO CAPITAL GAINS AROSE SINCE THE PROPERTY IN Q UESTION WAS THE AGRICULTURAL LAND WHICH WAS SITUATED MORE T HAN 8 KMS. AWAY FROM ANY MUNICIPAL LIMITS. WE ALSO FIND T HE PENALTY HAS BEEN LEVIED BY THE ASSESSING OFFICER WI TH RESPECT TO THE ADDITION MADE ON ACCOUNT OF LONG TER M CAPITAL GAIN. SINCE WE HAVE DISMISSED THE APPEAL OF THE REVENUE WITH REGARDS TO LONG TERM CAPITAL GAIN AGAI NST WHICH THE IMPUGNED PENALTY U/S 271(1)(C) HAS BEEN L EVIED BY THE ASSESSING OFFICER THE SAME ALSO DESERVES TO BE DELETED. WE ACCORDINGLY HOLD THAT NO INTERFERENCE IS CALLED FOR WITH THE ORDER OF THE THE CIT(A) IN DELETING TH E IMPUGNED PENALTY. THUS APPEAL OF THE REVENUE IS A LSO DISMISSED. 5. IN THE RESULT BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. 4 ITA NO. 1001 & 1002/PN/2010 SHANTARAM R BHANDE A.Y. 2005-06 PRONOUNCED IN THE OPEN ON 30 TH NOVEMBER 2011. SD/- SD/- (D. KARUNAKARA RAO) ACCOUNTANT MEMBER SHAILENDRA KUMAR YADAV JUDICIAL MEMBER PUNE DATED THE 30 TH NOVEMBER 2011. ANKAM COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT V PUNE 4. CIT(A)-V PUNE 5. THE D.R ITAT PUNE BENCH PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES PUNE.