COMMISSIONER OF INCOME TAX PATIALA vs. M/S REKHA LAND PVT LTD LUDHIANA

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ITR/553559/1995HC Punjab & HaryanaPHHC01032547199527 November 2006Bench: MR. JUSTICE ADARSH KUMAR GOEL,MR. JUSTICE RAJESH BINDAL2 pages
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What did the High Court hold?

The High Court held that the question of law referred to it was answered in favour of the revenue and against the assessee. This decision was based on the fact that the issue had already been adjudicated in the assessee's own case in a prior reference (ITR Nos. 213-216 of 1995 decided on 6.11.2006). The Tribunal's impugned order was noted to have followed an earlier Tribunal order that was the subject of the aforementioned reference. Therefore, the High Court found no reason to deviate from the established precedent in the assessee's own case. The operative direction was to answer the reference in favour of the revenue.

What were the facts?

This case involves a reference of a question of law to the High Court of Punjab and Haryana at Chandigarh, arising from an order of the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench. The assessment years under consideration are 1974-75 to 1978-79, 1986-87, and 1987-88. The dispute concerns whether amounts received in installments by the assessee, M/s Rekha Land Pvt. Ltd., a colonizer, on account of the sale of plots, should be treated as trading receipts. The ITAT had previously ruled in favour of the assessee on this issue, following its own earlier orders.

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 amounts received in installments on account of sale of plots by the assessee, who is a colonizer, are not trading receipts? Assessee's Contention: The judgment does not record any specific contentions made by the assessee before the High Court. However, the ITAT's decision, which the assessee would have supported, was that the amounts received were not trading receipts. Revenue's Contention: The revenue's counsel pointed out that this specific question of law had already been decided in favour of the revenue and against the assessee in the assessee's own case in ITR Nos. 213-216 of 1995, decided on 6.11.2006. The revenue argued that the ITAT's impugned order followed an earlier Tribunal order that was the subject of that previous reference.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

**** I.T.R. No.553-559 of 1995 Date of Decision:27.11.2006 The Commissioner of Income-tax, Patiala .....Petitioner Vs. M/s Rekha Land Pvt. Ltd., Arya School Road, Ludhiana

.....Respondent CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE RAJESH BINDAL Present:- Mr. S.K.Garg Narwana, Advocate for the Revenue. **** ADARSH KUMAR GOEL, J. The following question of law has been referred for opinion of this Court arising out of order passed by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh in I.T.A. Nos.1699 to 1705/Chandi/90 dated 25.1.1994 in respect of assessment years 1974-75 to 1978-79, 1986-87 & 1987-88):- “Whether on the facts and in the circumstances of the case, the ITAT was right in law in holding that amounts received in instalments on account of sale of plots by the assessee who is a coloniser are not trading receipts?” Learned counsel for the revenue points out that the question referred has already been decided in favour of the revenue and against the assessee in assessee's own case in ITR Nos.213-216 of 1995 decided on 6.11.2006. The Tribunal in the impugned order had followed earlier order of the Tribunal which was subject matter of above reference to this Court. In view of the above, the question referred is answered in favour of the revenue and against the assessee.

( ADARSH KUMAR GOEL ) JUDGE November 27, 2006 ( RAJESH BINDAL ) renu JUDGE

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