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Income Tax Appellate Tribunal, “B” BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI S. JAYARAMAN
आदेश/ O R D E R
PER S. JAYARAMAN, ACCOUNTANT MEMBER:
The Revenue filed this appeal against the order of the Commissioner of Income Tax (Appeals), Salem, in dated 30.11.2017 for assessment year 2013-14.
ITA No.528/Mds/2018 :- 2 -:
While making the assessment for assessment year 2013-14, the Assessing Officer noticed that the assessee has credited Rs. 58,45,000/- as profit on sale of agricultural land and claimed the same as an exempt income.
The AO after due examination disallowed the claim holding that the lands were not agricultural in nature, the sellers and buyers are engaged in mining of granites, the impugned lands would have put to mining purpose only, as the lands were situated in a village famous for granite activities and only mining activity is possible in such area etc. Therefore, he treated the entire sale proceeds at Rs. 58,45,000/- as profits from long term capital gains.
Aggrieved, the assessee filed appeal before the Ld. CIT(A). The Ld. CIT(A) allowed the appeal.
Aggrieved against the order of the Ld. CIT(A), the Revenue filed this appeal. When the appeal was taken for hearing both the Ld. Counsel for the assessee and the Ld. Departmental Representative submitted that the tax effect involved in this appeal is Rs. 18,73,360/-. In view of the latest circular issued by the Central Board of Direct Taxes, viz., Circular No. 3 of 2018 in F.No. 279/Misc./142/2007-ITJ(Pt.) dated 11.07.2018, wherein it has specified that where the tax effect does not exceed Rs. 20 lakhs, the pending appeals before the tribunal may be withdrawn/not processed. Accordingly, this tribunals is of the concerned opinion that the appeal filed by the Revenue is not maintainable and hence it stands dismissed.
ITA No.528/Mds/2018 :- 3 -:
In the result, the Revenue’s appeal is dismissed.
Order pronounced on Thursday, the 26th day of July, 2018 at Chennai.