TMI Blog2018 (7) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... al was of the view that whether there was agricultural income or not was not relevant. No fault can be found with the reasoning of the learned Tribunal. The fact that there was loss and not income could not have made any difference to the nature and character of the land. No substantial question of law. - Tax Case (Appeal) No. 290 of 2018 - - - Dated:- 26-6-2018 - Ms. Indira Banerjee, Chief Justice And Ms. Justice P. T. Asha For the Appellant : Mr.T.R.Senthil Kumar and Mr.S.Rajesh JUDGMENT ( Delivered by Ms. Indira Banerjee, Chief Justice ) This appeal filed by the Revenue is against an order of the Income Tax Appellate Tribunal C Bench, Chennai, partly allowing the appeal of the respondent assessee, being I.T.A.No.2510/Mds/2017, against the appellate order dated 29.8.2017 of the Commissioner of Income Tax (Appeals)-15, dismissing the appeal of the respondent assessee, being I.T.A.No.173/2015-16/CIT(A)-15, against an impugned order of re-assessment dated 27.3.2015 under Section 147 read with Section 254 of the Income Tax Act, 1961, hereinafter referred to as the said Act for the assessment year 2007-2008. 2. The respondent assessee filed return of income on 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icultural activities. The appellant had not submitted a certificate from the Tahsildar, the competent authority, to certify that agricultural activity was carried on in the said land. 7. Being aggrieved, the respondent assessee filed an appeal, being I.T.A.No.2510/Mds/2017, before the learned Income Tax Appellate Tribunal 'C' Bench, Chennai, which has partly been allowed and partly dismissed. The disallowance of exemption of ₹ 14,38,86,650/- claimed by the respondent assessee has been set aside with the following observations and/or findings: 6. ...... The land in question which has been sold admittedly has been shown as agricultural land as per the Chitta Adangal. The distance from the nearest Municipality has also been shown to be beyond 8 Kms. The land Revenue records also clearly shows that the land specified is agricultural land. In fact, there is an Inspector's Report referred to in the Assessment Order dated 29.12.2009 wherein it is mentioned that the Inspector has verified the place and has also contacted with the Village Administrative Office and the President of Pudupakkam Village. The copy of the unsigned Inspector's Report has also been p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are also taxable under Section 2(14)(iii) of the Income Tax Act, inserted by the Finance Act, 1989, with effect from 1.4.1970? (4) Whether the Income Tax Appellate Tribunal was justified in holding that the land was agricultural land disregarding the absence of any evidence that agricultural activity was being carried on at the time of sale? (5) Whether on the facts and in law the Income Tax Appellate Tribunal erred in allowing the exemption, even though the assessee had not offered any agricultural income between Assessment Years 2003-04 to 2007-08? (6) Whether on the facts and in law the Income Tax Appellate Tribunal erred in allowing the exemption to the assessee who purchased another agricultural land from out of the sale proceeds and also purchased residential property in the name of his wife, Mrs.Vimala Raghupathy vide document No.6512 of 2006, 6513 of 2006 at SRO Neelankarai? 9. Based on the evidence on record, the learned Tribunal which is a fact finding body arrived at the factual finding that the land in question was agricultural land, which did not attract capital gains. A perusal of the definition of capital asset in Section 2(14) of the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit. (6) The High Court may determine any issue which - (a) has not been determined by the Appellate Tribunal; or (b) has been wrongly determined by the Appellate Tribunal, by reason of a decision on such question of law as is referred to in sub-section (1). (7) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908 (5 of 1908) relating to appeals to the High Court shall, as far as may be, apply in the case of appeals under this section. 12. An appeal lies under Section 260-A of the said Act, only when there is a substantial question of law. We find that there is no question of law involved in this appeal much less any substantial question of law. 13. In Sir Chunilal V. Mehta Sons Ltd. vs Century Spg. Mfg. Co. Ltd., reported in AIR 1962 SC 1314, the Supreme Court agreed with and approved a Full Bench Judgment of this Court in Rimmalapudi Subba Rao vs Noony Veeraju And Ors reported in AIR 1951 Mad 969 and laid down the principles for dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the general principles to be applied in determining the question are well settled and the only question was of applying those principles to the particular fact of the case it would not be a substantial question of law. This Court laid down the following test as proper test, for determining whether a question of law raised in the case is substantial: (Sir Chunilal case [1962 Supp (3) SCR 549 : AIR 1962 SC 1314] , SCR pp. 557-58) The proper test for determining whether a question of law raised in the case is substantial would, in our opinion, be whether it is of general public importance or whether it directly and substantially affects the rights of the parties and if so whether it is either an open question in the sense that it is not finally settled by this Court or by the Privy Council or by the Federal Court or is not free from difficulty or calls for discussion of alternative views. If the question is settled by the highest court or the general principles to be applied in determining the question are well settled and there is a mere question of applying those principles or that the plea raised is palpably absurd the question would not be a substantial question of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, and, involves a debatable legal issue. A substantial question of law will also arise in a contrary situation, where the legal position is clear, either on account of express provisions of law or binding precedents, but the court below has decided the matter, either ignoring or acting contrary to such legal principle. In the second type of cases, the substantial question of law arises not because the law is still debatable, but because the decision rendered on a material question, violates the settled position of law . (iii) The general rule is that High Court will not interfere with the concurrent findings of the courts below. But it is not an absolute rule. Some of the well-recognised exceptions are where (i) the courts below have ignored material evidence or acted on no evidence; (ii) the courts have drawn wrong inferences from proved facts by applying the law erroneously; or (iii) the courts have wrongly cast the burden of proof. When we refer to decision based on no evidence , it not only refers to cases where there is a total dearth of evidence, but also refers to any case, where the evidence, taken as a whole, is not reasonably capable of supporting the finding. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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