2015 (7) TMI 658 - AT - Income Tax

Sale of land - Long Term Capital Gain v/s income from business - Held that - CIT(A) has followed the order of his predecessor passed in AYs 2006-07 & 2007-08. The matter was traveled upto the stage of Tribunal who was pleased to restore the issue back to the file of ld.CIT(A) for fresh adjudication by observing as during the appellate proceedings assessee filed three compilations. In reply to the query of the Bench, it was stated that all the documents filed in compilations were before AO as well as Ld.CIT(A). To verify the same, assessment records were called for and it was found that certain documents claimed to have been filed before AO were not part of the assessment record. Learned counsel of the assessee was fair enough to concede that the papers which are not part of assessment records may be treated as additional evidence before Ld.CIT(A) and therefore matter may be sent back to the file of Ld.CIT(A) for fresh adjudication after obtaining remand report from the AO on this additional evidence. Ld.DR did not object to this submission of the assessee s counsel. Therefore, the matter is hereby restored back to the file of Ld.CIT(A) accordingly. Thus we deem it proper that the present appeal be also restored to the file of ld.CIT(A) for fresh adjudication - Decided in favour of revenue for statistical purposes.

Summary

Issues:
- Appeal against the order of the Ld.Commissioner of Income Tax(Appeals) dated 24/08/2011 for AY 2008-09.
- Revenue's appeal regarding the addition of Long Term Capital Gain treated as income from business.
- Assessee's cross-objection on the value for section 45(2) of the I.T.Act and interest levy u/s.234A, 234B, and 234C.

Revenue's Appeal - Long Term Capital Gain:
The Revenue appealed against the Ld.Commissioner of Income Tax(A) deleting the addition of Long Term Capital Gain of Rs. 61,01,210 and treating it as income from business for AY 2008-09. The AO had computed the Long Term Capital Gain at Rs. 57,06,622. The Ld.CIT(A) followed the order of his predecessor for AYs 2006-07 & 2007-08, directing the deletion of the working of capital gain and taxing the entire business income. The Tribunal had earlier restored the issue back to the file of Ld.CIT(A) for fresh adjudication due to additional evidence not part of the assessment record. Consequently, the present appeal was also sent back to Ld.CIT(A) for fresh adjudication after obtaining a remand report from the AO. The Revenue's appeal was allowed for statistical purposes.

Assessee's Cross Objection - Section 45(2) Value and Interest Levy:
The Assessee's Cross Objection for AY 2008-09 raised concerns about the value to be adopted for section 45(2) of the I.T.Act and the levy of interest u/s.234A, 234B, and 234C. However, the Assessee decided not to press the cross-objection, leading to its dismissal. The appeal of the Revenue was allowed for statistical purposes, and the cross-objection by the Assessee was dismissed as not pressed.

In conclusion, the judgment involved the appeal and cross-objection related to the treatment of Long Term Capital Gain as income from business for AY 2008-09. The Revenue's appeal was allowed for statistical purposes, and the Assessee's cross-objection was dismissed as not pressed. The matter was sent back to Ld.CIT(A) for fresh adjudication following the Tribunal's decision to restore the issue due to additional evidence not part of the assessment record.