TMI Blog2016 (4) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... still Ld CIT(A) had decided not only to follow but to apply the view taken in those cited cases so as to give relief on the pretext that those case-laws being pronounced by the higher forum hence binding upon him. It is an incorrect way of following or applying a precedent. Law does not permit to blindly follow a Precedent. On one hand learned CIT(Appeals) has given a finding on certain facts that there were number of real estate projects in that area and that there was International Cricket Stadium located very near to the said land , therefore, in the absence of any agricultural activity it was a ‘capital asset’ for the purpose of levying tax as per the provisions of Income-tax Act, it is very strange that even after recording of thos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erged from the corresponding assessment order passed under section 143(3) dated 30-12-2011 were that the assessee in individual capacity is stated to be in the business of manufacturing biscuits. However, it was noticed by the Assessing Officer that the assessee had sold an agricultural land during the year under consideration. Facts of the case have revealed that the land in question was purchased by the assessee from one Shri Arun Jaiswal on 26th February, 2008 for a consideration of ₹ 16 lakhs. Later on in the month of November, 2008 the said land was sold to that very person, i.e., Shri Arun Jaiswal for a consideration of ₹ 50 lakhs. The Assessing Officer had investigated and sought information from Nagpur Improvement Trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereby initiated for furnishing inaccurate particulars of income and concealment of income. 3. When the matter was carried before the first appellate authority, it is worth to mention at the out set itself that on careful reading of the order of learned CIT(Appeals) we have noted that upto para 14 learned CIT(Appeals) had discussed the facts of the case and finally on para 14 made an observation that the land in question was to be treated as capital assets. The observation cum finding of learned CIT(Appeals) as per para 14 was as under: The above arguments of the AO are very relevant and apt for the facts of this particular case. The said lands are located definitely within 8 Kms. of municipal limits by aerial distance and are very ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not a capital asset without appreciating the facts of the case. On one hand learned CIT(Appeals) has given a finding that it was a capital asset but on the other hand, taken a contrary view and held that it was not a capital asset. Learned D.R. has argued that although it is correct that a decision of Hon ble High Court or Tribunal is binding upon him but the facts of the case should always match with the quoted precedent. In this case the facts have revealed that the land in question was never used for agricultural purpose and that the distance was about 6 Kms from the municipal limit. Therefore, it was a capital asset required to be taxed under the Income-tax Act. He has strongly pleaded that the order of learned CIT(Appeals) should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... binding force of a precedent gets destroyed or weakened. Right now there is no point in discussing all those circumstances because we are on the principles of ratio-decidendi of a decided case and how it is to be rationally applied. A precedent is an authority only for what it actually decides. Hence a judgment must be read as a whole . An observation in a judgment should be considered in the context in which they are made that too in the light of the facts/circumstances of that case. It is not desirable to pick few words from the judgment which is otherwise divorced from the context in which it was used. We are of the considered opinion that reliance should not be placed on a decision without discussing how the factual situation fits in, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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