9911796707
TMI Blog2014 (6) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... ng profit u/s. 115JB of the Act. 3. The facts relating to the above said issue are stated in brief. The assessee filed its return of income for the year under consideration declaring loss of Rs. 69.42 lakhs under normal provisions of the Act and the negative book profit of Rs. 27.21 lakhs u/s. 115JB of the Act. The Assessing officer noticed that the assessee had sold agricultural land located at Peerumade, which formed part of Stag Brook estate, and has realised a profit of Rs. 1,01,00,424. Though the above said profit was shown in the Profit and Loss account, yet the assessee excluded the same while computing the book profit under section 115JB of the Act, by placing reliance on the decision rendered by the Co-ordinate Bench of Cochin Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 115JB of the Act. 6. We have heard the rival contentions and perused the record. There is no dispute between the parties that the impugned agricultural land is not a "Capital Asset" in terms of sec. 2(14)(iii) of the Act, i.e., the same is not located within the municipal limits or within the notified limits. As submitted by the Ld. AR, we notice that, an identical issue has been decided in favour of the assessee by the Co-ordinate Bench of the ITAT in the assessee's own case relating to the assessment year 2007-08 (referred supra). For the sake of convenience, we extract below the operating portion of the above said order passed by the Tribunal. "3. We have heard the parties, and perused the material on record. The Revenue's stand is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in nature inasmuch it concedes that the income is otherwise not chargeable to tax under the regular provisions of the Act. 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 basis for computing the same. Reference by the ld. CIT(A) to the Circular No. 550 by the Board in this regard is in our view apposite; the receipt being admittedly a capital receipt. We therefore following the decision by the tribunal in the case of Harrisons Malayalam Ltd. vs. ACIT (supra), delete the inclusion of profit of Rs. 23.69 lakhs on account of sale of agricultural land, admittedly not a capital as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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