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Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI ABRAHAM P. GEORGE
The Deputy Commissioner of v. M/s.India Poultry Farm, Income Tax, No.45, NSB Road, Central Circle-IV (1), Trichy - 2 Nungambakkam, Chennai – 34 PAN: AAAFT9753D (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/Appellant by : Shri A.V. Shreekanth, JCIT ��यथ� क� ओर से/Respondent by : Shri S. Sridhar, Advocate सुनवाई क� तारीख/Date of Hearing : 30.11.2016 घोषणा क� तारीख/Date of Pronouncement : 25.01.2017 आदेश /O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: Both the appeals of the Revenue are directed against the common order passed by the Commissioner of Income Tax (Appeals) for the assessment years 2001-02 & 2002-03. Therefore we heard both the appeals of the Revenue together and disposing of the same by this common order.
Shri A.V. Shreekanth, Ld. Department Representative submitted that the only issue arises for consideration is computation of capital gain in respect of transfer of building. According to the Ld. Department Representative, this tribunal in the earlier round of litigation in & 235/Mds/2012 dated 18.05.2012 found that it was never the intention of the partners of the firm to treat the land in question as owned by the partnership firm. However, in respect of building and developmental work the matter was remitted back to the file of the CIT (Appeals). The CIT (Appeals) found that whatever ratio applicable to land has also equally applicable to building and developmental works said to be carried on. The Ld. Department Representative submitted that the building and developmental work carried on the land has to be treated separately and therefore the profit on transfer of building is liable for capital gain.
We heard Shri S. Sridhar, Ld. Counsel for the assessee also.
In the earlier round of litigation this Tribunal found that capital tax cannot be levied on the profit arising out of transfer of land. It is not in dispute that the order of this Tribunal dated 18.05.2012 attains finality. Therefore as rightly observed by the CIT (Appeals) that the ratio which is applicable for the transfer of land in question is also equally applicable for the building and developmental works said to be carried on. Therefore this Tribunal do not find any reason to interfere with the order of the lower authority. Accordingly the same is confirmed.
In the result both the appeals of the Revenue stands dismissed.
Order pronounced on 25th January 2017 at Chennai.