CI.T HRY. RTK vs. M/S HRY. LAND RECLAMATION & DEV. LTD.

ITR/112/1997HC Punjab & HaryanaPHHC01035350199726 March 2007Author: MR. JUSTICE RAJESH BINDAL,MR. JUSTICE M.M. KUMAR2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court found that the Tribunal had not dealt with the real issue in the present case. It observed that the Tribunal had relied on its earlier order for assessment year 1987-88, but the issues involved in that year were altogether different from the issue for the assessment year 1988-89. Consequently, the High Court deemed it appropriate to refer the matter back to the Tribunal to deal with the issue and take a final decision on merits. The High Court did not decide the question of law itself but remanded the matter for adjudication by the Tribunal.

What were the facts?

The Commissioner of Income Tax, Haryana, Rohtak (the revenue) has filed a reference application before the High Court of Punjab and Haryana at Chandigarh against the order of the Income Tax Appellate Tribunal, Delhi Bench 'B', New Delhi. The assessment year in question is 1988-89. The Tribunal's order, dated February 11, 1997, in ITA No. 8869/Del/91, is under challenge. The High Court notes that the Tribunal had followed its earlier order for assessment year 1987-88 to decide the issue against the revenue. However, upon reviewing the order for assessment year 1987-88, the High Court found that the issues involved were different from the present case.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the ITAT was right in law in holding that the income derived from sale of old material, interest, and rental charges received from employees, credited to the non-agricultural income portion in the P&L account, was agricultural income within the meaning of Section 2(1A) of the Income Tax Act, 1961, when the immediate and effective source of such income was not land? Assessee's contentions: Not recorded in the judgment. Revenue's contentions: Not recorded in the judgment, beyond the framing of the question by the Tribunal which implies the revenue contested the classification of the income as agricultural.

Which sections of the Income-tax Act were involved?

Section 2(1A)

AI-generated summary — verify with the full judgment below

I.T.R.

-1- *** IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH I.T.R.

Date of decision: CORAM:- Hon'ble Mr. Justice M.M.Kumar Hon'ble Mr. Justice Rajesh Bindal Present:- Mr. Yogesh Putney, Advocate, for the revenue. Mr. Pankaj Jain, Advocate, for the assessee. Rajesh Bindal,J. Following questions of law have been referred for opinion of this Court by the Income Tax Appellate Tribunal, Delhi Bench 'B', New Delhi (for short 'the Tribunal'), arising out of its order dated 11.2.1997 in I.T.A.No. 8869/Del/91, in respect of the assessment year 1988-89:- “Whether, on the facts and in the circumstances of the case, the ITAT was right in law in holding that the income derived from sale of old material, interest and rental charges received from employees credited to non-agricultural income portion in P&L account was agricultural income within the meaning of Section 1-A of Section 2 of the Act when immediate and effective sources of such income w

The order continues below.

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