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TMI Blog2014 (6) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... II-B of the Act do not operate to extend the scope of `total income’ per section 5 on which the charge to tax u/s 4 is attracted, but is only toward providing an alternative basis for computing the same – the inclusion of profit on account of sale of agricultural land is not a capital asset u/s 2(14), in the computation of book profit u/s 115JB of the Act -the profit from sale of agricultural land, which is not a “Capital Asset”, cannot be included for the purpose of computing book profit u/s 115JB of the Act – thus, the decision of the CIT(A) is upheld – Decided against Revenue. - I.T.A. No. 37/Coch/2014 - - - Dated:- 6-6-2014 - Shri N. R. S. Ganesan, JM And B. R. Baskaran, AM,JJ. For the Petitioner : Shri Sony Mathew, CA F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding it for the purpose of computation of book profit. The Assessing officer also took the view that the gain arising on sale of agricultural land cannot be considered as agricultural income u/s. 2(1A) of the Act and hence, cannot be treated as an exempted income u/s. 10(1) of the Act. Accordingly, the AO included the profit on sale of agricultural land in the book profit computed by the assessee. 3. In the appellate proceedings, the Ld. CIT(A) deleted the above said addition by placing reliance on the decision rendered by the Cochin Bench of ITAT in the case of Harrisons Malayalam (supra). 4. Before us, the Ld. DR placed strong reliance on the assessment order and submitted that the profit realized on sale of agricultural land canno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions, including s. 115JB. As such, there is no basis for excluding the profit derived on the sale of its agricultural land by the assessee. Further, there is no question of the same being exigible for deduction on account of sec. 10 of the Act, which makes no reference to the said income. The assessee, on the other hand, relies on the decision by the tribunal in the case of Harrisons Malayalam Ltd. vs. ACIT (supra), per which the said profit has been held as not liable to book profit tax u/s. 115JB. The Revenue, however, prefers with its view as the matter has been, as stated, carried by it in appeal before the hon ble high court. The tribunal has, in rendering its said decision, relied on the decisions by the apex court in the case of Si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purview of the Income tax Act at all. For example, the profit arising on sale of personal effects is not exigible to Income tax Act. In the similar manner, the profit arising on sale of agricultural land, which is not a Capital asset, is also not exigible to Income tax. Hence, in our view, an item of income which does come under the purview of Income tax cannot be subjected to tax under any of the provisions of the Act. Hence, the Tribunal, in the assessee s own case referred above, has expressed the following view:- The provisions of Chapter XII-B of the Act do not, in our view, operate to extend the scope of `total income per section 5 on which the charge to tax u/s. 4 is attracted, but is only toward providing an alternative ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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