Income Tax Appellate Tribunal - Chandigarh
Sh. Karanbir Singh, Chandigarh vs Department Of Income Tax on 26 December, 2011
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH 'A', CHANDIGARH BEFORE SHRI D.K. SRIVASTAVA, ACCOUNTANT MEMBER AND Ms. SUSHMA CHOWLA, JUDICIAL MEMBER ITA No.1040 /Chd/2011 ( Assessment Years : 2007-08) The A.C.I.T., Vs. Sh.Karanbir Singh Circle 4(1), # 1370, Chandigarh. Sector 33C, Chandigarh. PAN: ADYPS3456K (Appellant) (Respondent) Appellant by : Smt.Jyoti Kumari, DR Respondent by : Shri Vineet Krishan Date of hearing : 26.12.2011 Date of Pronouncement : 04.01.2012 O R D E R Per SUSHMA CHOWLA, J.M. :
The appeal by the Revenue is against the order of the Commissioner of Income Tax (Appeals), Chandigarh dated 09.08.2011 relating to assessment year 2007-08 against the order passed u/s 143(3) of Income Tax Act, 1961.
2. The Revenue has raised the following grounds of appeal:
"1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in allowing appeal of the assessee without appreciating the facts of the case.
2. On the facts and circumstances of the case and in law the Ld. CIT(A) has erred in treating income of Rs.33,23,500/- assessed as 'Business Income' as income from 'Long Term Capital Gain' and, also thereby giving the benefit of deduction under section 54B of the Income Tax Act, 1961."
3. The learned A.R. for the assessee at the outset pointed out that the issue in the present appeal stands covered by the order of the Tribunal in assessee's own case relating to assessment year 2006-07. It is also pointed out by the learned A.R. for the assessee that the CIT (Appeals) had allowed the relief in view of the order of the Tribunal.
4. The learned D.R. for the Revenue placed reliance on the order of the Assessing Officer.
5. We have heard the rival contentions and perused the record. The issue arising in the present appeal is in connection with the assessability of the gains arising on sale of land in village Kararon, Nayagaon and also another land in Amritsar. The CIT (Appeals) vide para 3.1 had noted that as per the assessment order, part of these lands were sold in the financial year pertaining to assessment year 2006-07 also and in that year gains arising from the sale of two lands were treated as business profit by the Assessing Officer. The Tribunal in assessment year 2006-07 had held the said land to be capital assets and gain arising thereon was directed to be assessed as capital gains. The Assessing Officer in the captioned assessment year had treated the income under the head "profits of business". The CIT (Appeals) following the order of the Tribunal in assessee's own case had held that the profits arising from transfer of land in village Kararon and Amritsar were to be assessed as capital gains and not as business profits.
6. The present issue was considered at length by the Tribunal in the case of the assessee in ITA No.68/Chd/2011 & C.O.No.21/Chd/2011 relating to assessment year 2006-07 with lead order in ITA No.1350/Chd/2010. The Tribunal vide order dated 21.6.2011 held that the income arising from sale of land in Kararon village was to be assessed as income from capital gains. It was further held that the said asset falls within the definition of 'capital asset' and the gain arising therefrom to be assessed as income from capital gains. Similarly, the profits arising from the sale of land in Amritsar is to be assessed as income from capital gains. We are in agreement with the order of CIT (Appeals) and upholding the same we dismiss the grounds of appeal raised by the Revenue.
7. In the result, the appeal of the Revenue is dismissed.
Order pronounced in the open court on this 4th day of January, 2012.
Sd/- Sd/- (D.K.SRIVASTAVA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 4th January, 2012 *Rati* Copy to: The Appellant/The Respondent/The CIT(A)/The CIT/The DR. True Copy By Order Assistant Registrar, ITAT, Chandigarh PAGE 2