ITO, Ward-11(4), Hyderabad v. M/s. Shubham Agri Research Centre,, Hyderabad

ITA 1349/HYD/2011 | 2004-2005
Pronouncement Date: 16-11-2011 | Result: Dismissed

Appeal Details

RSA Number 134922514 RSA 2011
Assessee PAN ABAFS2309H
Bench Hyderabad
Appeal Number ITA 1349/HYD/2011
Duration Of Justice 3 month(s) 27 day(s)
Appellant ITO, Ward-11(4), Hyderabad
Respondent M/s. Shubham Agri Research Centre,, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 16-11-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 16-11-2011
Assessment Year 2004-2005
Appeal Filed On 20-07-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SHRI CHANDRA POOJARI A.M AND SMT. ASHA VIJAYARAGHAVAN J.M ITA NO.1349/HYD/2011 ASSESSMENT YEAR 2004-05 ITO WARD-11(4) HYDERABAD. (APPELLANT) M/S. SHUBHAM AGRI. RESEARCH CENTRE HYDERABAD. (PAN:ABAFS2309H) (RESPONDENT) APPELLANT BY: SRI K.J.RAO RESPONDENT BY : SRI GVVS MURTHY DATE OF HEARING: 14-11-2011. DATE OF PRONOUNCEMENT: 14-11-2011. O R D E R PER CHANDRA POOJARI ACCOUNTANT MEMBER: THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTED AG AINST THE ORDER OF THE CIT (A)-VI HYDERABAD DATED 27-5-2011 AND IT PERTAINS TO THE ASSESSMENT YEAR 2004-05. 2. THE REVENUE RAISED THE FOLLOWING GROUNDS BEFORE US:- I. THE LD. CIT (A) ERRED IN ALLOWING THE APPEAL O F THE ASSESSEE BY RELYING ON THE DECISION OF ITAT HYDERABAD BENCH IN THE ITA NO.1349/HYD/2011- M/S SHUBHAM AGRI RESEARCH CENTRE HYD. L.L ========================== 2 CASE OF M/S VIBHA AGRITECH LTD. WITHOUT CONSIDERIN G THE FACTS AND CIRCUMSTANCES OF THE CASE. II. THE LD. CIT (A) HAS ERRED IN TREATING THE INCO ME OF THE ASSESSEE FROM THE PRODUCTION OF SEEDS AS AGRICULTUR AL INCOME INSTEAD OF BUSINESS INCOME. III. THE LD. CIT (A) HAS ERRED IN IGNORING THE SU BSTANTIAL QUESTION OF LAW-WHETHER THE INCOME DERIVED BY THE A SSESSEE FROM PRODUCTION OF SEEDS CAN BE TREATED AS INCOME F ROM AGRICULTURAL OPERATIONS IN VIEW OF THE NATURE OF AC TIVITY INVOLVED WHICH IS NOT A SIMPLE AND TRADITIONAL AGRI CULTURAL ACTIVITY. AFTER HEARING BOTH THE PARTIES WE ARE OF THE OPINI ON THAT SIMILAR ISSUE CAME UP FOR CONSIDERATION BEFORE THIS TRIBUNAL IN T HE CASE OF VIBHA AGROTECH LIMITED VS. INCOME-TAX OFFICER (2009) 120 ITD 182 WHEREIN HELD THAT: THE BASIC SEEDS ARE PRODUCED BY THE ASSESSEE BY DOI NG BASIC AGRICULTURAL OPERATIONS; THE ASSESSEE IS DOING AGRI CULTURAL OPERATIONS AND GROWING BASIC SEEDS ON THE LANDS. I T IS NOT THE CASE OF THE REVENUE THAT WITHOUT PERFORMING THE BAS IC OPERATIONS THE SUBSEQUENT OPERATIONS HAVE BEEN CAR RIED ON BY THE ASSESSEE. IF THE BASIC SEEDS ARE SOLD BY THE ASSESSEE THE SAME IS THE RESULT OF THE BASIC OPERATIONS ON THE L AND ON EXPENDING HUMAN SKILL AND LABOUR THEREON AND IT IS ONLY AFTER PERFORMING SEVERAL OPERATIONS SUCH AS WEEDING WATE RING MANURING ETC. THE RESULTANT PRODUCT IS GROWN AND MADE READY FOR SALE IN THE FORM OF BASIC SEEDS. THUS THE BASI C SEEDS SOLD BY THE ASSESSEE WERE THE RESULT OF PRIMARY AS WELL AS SUBSEQUENT ITA NO.1349/HYD/2011- M/S SHUBHAM AGRI RESEARCH CENTRE HYD. L.L ========================== 3 OPERATIONS INVOLVING HUGE SKILL AND EFFORTS AS DEFI NED UNDER SECTION 2(1A) AND THE SAME IS AN AGRICULTURAL INCOM E AS PROVIDED UNDER SECTION 2(1A) ENTITLED TO EXEMPTION UNDER SEC . 10(1) OF THE ACT. IN VIEW OF THE ABOVE DECISION OF THE TRIBUNAL WE A RE INCLINED TO DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. 3. IN THE RESULT THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14-11-201 1 SD/- SD/- (SMT. ASHA VIJAYARAGHAVAN) (CHANDRA POOJARI) JUDICIAL MEMBER. ACCOUNTANT MEMBER. DT/-14-11-2011. COPY FORWARDED TO: 1. ITO WARD - 11(4) ROOM NO.547 D - BLOCK 5 TH FLOOR IT TOWERS AC GUARDS HYDERABAD. 2. M/S. SHUBHAM AGRI RESEARCH CENTRE RTC COLONY M EDCHAL HYDERABAD. 3. CIT(A) - V I HYDERABAD. 4. CIT AP HYDERABAD. 5. THE D.R. ITAT HYDERABAD. JMR*