9911796707
TMI Blog1989 (8) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... mmon order of the Appellate Tribunal. The Revenue had filed three appeals (I. T. A. Nos. 540, 541 and 542 of 1984) for the assessment years 1975-76 to 1977-78. R. A Nos. 486, 487 and 488 (Coch)/1984 are filed by the Revenue against that portion of the order wherein it felt aggrieved, in the appeals filed by the assessee. R. A. Nos. 489, 490 and 491 (Coch)/1984 are applications filed by the Revenue aggrieved by the orders passed by the Appellate Tribunal in the appeals filed by it. R. A. No. 493 (Coch)/1984 relates to the assessment year 1978-79 with reference to the appeal filed for the assessment year 1978-79 before the Appellate Tribunal (I. T. A. No. 343/Coch/1984.). The three appeals filed by the assessee (I. T. A. Nos. 390, 391 and 392 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in the circumstances of the case, the Tribunal was right in holding that the fair market value of the yielding rubber trees as on January 1, 1954, or as on January 1, 1964, as the case may be, was much more than the value obtained by the sale of the trees at its timber value during the accounting periods relevant to the assessment years 1975-76 to 1978-79 and, consequently, no capital gains arose out of the sale of the trees ?" At the instance of the assessee, the following questions (numbered as questions Nos. 2 to 5) for the assessment years 1975-76 to 1977-78 have been referred by the Appellate Tribunal for the decision of this court : "(2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. Therefore, in the first instance, we propose to deal with the sole question, referred for the decision of this court at the instance of the Revenue, for all the four years. The assessee is a plantation company. During the previous years relevant to the assessment years 1975-76 to 1978-79, the assessee-company sold unyielding rubber trees. During the previous year relevant to the assessment year 1975-76, the assessee sold 19,790 old and unyielding rubber trees. 6,150 rubber trees were sold at the rate of Rs. 50 per tree and 13,640 trees were sold at the rate of Rs. 119 per tree. The Income-tax Officer determined the fair market value of the trees as on January 1, 1954, at Rs. 38 per tree and worked out the capital gains arising o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 1977-78. The Revenue went up in appeals before the Tribunal against the reduction in the quantum of capital gains effected by the Commissioner of Income-tax (Appeals) for the assessment years 1975-76 to 1977-78. Similarly, for the assessment year 1978-79, the Revenue filed an appeal before the Tribunal against the total deletion of the capital gains by the Commissioner of Income-tax (Appeals). This is how the seven appeals so filed by the assessee and the Revenue (3+4) were disposed of by the common order dated September 20, 1984. Many aspects were posed before the Appellate Tribunal for consideration and decided by it. One of the important questions highlighted by the assessee before the Appellate Tribunal was that no capital gains r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e than the timber value obtained by the sale of the tree during the relevant accounting periods. On this basis, the Appellate Tribunal held that no capital gains arose out of the sale of the old and unyielding rubber trees. It is this aspect of the question that has been referred as a common question arising for all the four years, at the instance of the Revenue. Counsel for the Revenue very vehemently contended that what was sold was old and unyielding rubber trees. It is such an asset-an unyielding rubber tree-as it could be postulated as on January, 1, 1954 or January 1, 1964, that should be taken into account to fix the value or cost on the date of acquisition. The Tribunal rejected this plea. What is exigible to capital gains is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary 1, 1954, was much more than the value obtained by the sale of the tree for its timber value during the accounting periods relevant to the assessment years which were under appeals before them. On the basis of this finding, it was held that no capital gains arose out of the sale of the unyielding rubber trees. The finding of the Appellate Tribunal that the value of the yielding rubber trees as on January 1, 1954, was much more than the value obtained by the sale of the trees for its timber value during the accounting periods relevant to the assessment years under consideration is a pure finding of fact. The said finding is based on proper and authentic material. The basis for the said finding is the value awarded by the Sub-court Nager ..... X X X X Extracts X X X X X X X X Extracts X X X X
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