Commissioner of Income-tax, Coimbatore v. M/s. The Peria Karamalai Tea & Produce Co. Ltd
[Citation -2014-LL-0908-30]

Citation 2014-LL-0908-30
Appellant Name Commissioner of Income-tax, Coimbatore
Respondent Name M/s. The Peria Karamalai Tea & Produce Co. Ltd.
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 08/09/2014
Judgment View Judgment
Keyword Tags income from business • agricultural income
Bot Summary: Respondent Appeal filed against the order dated 11.06.2013, passed by the Income Tax Appellate Tribunal, 'C' Bench, Chennai, made in ITA No.2310/Mds/2012. The Assessing Officer while 2 completing the assessment of income under Section 143 of the Income Tax Act, vide assessment order dated 27.12.2011 made an addition of Rs.37,07,500 on account of income from sale of trees and not as income from business, besides other issues, of which this Court is not concerned. The assessee preferred an appeal to the Commissioner of Income Tax, who allowed the appeal of the assessee and deleted the addition of Rs.37,07,500/- made by the Assessing Officer on account of income from sale of trees in the tea garden. The Commissioner of Income Tax relied upon the judgment of the Supreme Court in Vishnudatta Antharjanam - Vs Commercial of Agricultural Income Tax (78 ITR 58 (SC , where it has been held that felling of trees is outside the purview of business income. Against the order of the Commissioner of Income Tax, the Revenue preferred appeal to the Tribunal. The Tribunal, taking note of the business of the assessee, which is growing and producing tea and there being no intention to generate revenue from the sale of trees, came to the conclusion that the cutting of trees, leaving the stump as required by the condition imposed by the forest department is not for generating income out of the trees, but for felling of the wood for own consumption. The Tribunal further relied upon the judgment of the Supreme Court in CIT Vs Ambat Echukutty Menon (120 ITR 70 (SC to reaffirm the view that it is not a case of 3 business income.


1 IN HIGH COURT OF JUDICATURE AT MADRAS DATE : 08.09.2014 CORAM HONOURABLE MR. JUSTICE R.SUDHAKAR AND HONOURABLE MR. JUSTICE G.M.AKBAR ALI T.C.A. NO. 728 OF 2014 Commissioner of Income Tax Coimbatore. Appellant - Vs - M/s. Peria Karamalai Tea & Produce Co. Ltd. 234 A, Cowcoody Chambers Race Course Road Coimbatore 641 019. Respondent Appeal filed against order dated 11.06.2013, passed by Income Tax Appellate Tribunal, 'C' Bench, Chennai, made in ITA No.2310/Mds/2012. For Appellant : Mr. T.R.Senthilkumar JUDGMENT (DELIVERED BY R.SUDHAKAR, J.) This appeal is preferred by Revenue against order dated 11.06.2013, passed by Appellate Tribunal, in ITA No.2310/Mds/2012. 2. respondent/assessee is engaged in business of manufacturing of tea and growing of cardamom and pepper. respondent assessee filed return of income for assessment year 2009-2010, which was taken up for scrutiny. Assessing Officer while 2 completing assessment of income under Section 143 (3) of Income Tax Act, vide assessment order dated 27.12.2011 made addition of Rs.37,07,500 on account of income from sale of trees and not as income from business, besides other issues, of which this Court is not concerned. assessee preferred appeal to Commissioner of Income Tax (Appeals), who allowed appeal of assessee and deleted addition of Rs.37,07,500/- made by Assessing Officer on account of income from sale of trees in tea garden. Commissioner of Income Tax (Appeals) relied upon judgment of Supreme Court in Vishnudatta Antharjanam (A.K.T.K.M.) - Vs Commercial of Agricultural Income Tax (78 ITR 58 (SC)), where it has been held that felling of trees is outside purview of business income. Against order of Commissioner of Income Tax (Appeals), Revenue preferred appeal to Tribunal. 3. Tribunal was of view that assessee was not felling trees for sale of wood to any outsider for generating income and fact that cut trees are used for own consumption is admitted by Revenue. Assessing Officer, in his order, has categorically stated that wood cut from tree is used by company as fire-wood. Tribunal, taking note of business of assessee, which is growing and producing tea and there being no intention to generate revenue from sale of trees, came to conclusion that cutting of trees, leaving stump as required by condition imposed by forest department is not for generating income out of trees, but for felling of wood for own consumption. Tribunal further relied upon judgment of Supreme Court in CIT Vs Ambat Echukutty Menon (120 ITR 70 (SC)) to reaffirm view that it is not case of 3 business income. Aggrieved against said order of Tribunal, Revenue is before this Court by filing present appeal. 4. Heard Mr. Senthilkumar, learned standing counsel appearing for appellant and perused documents as also orders of Commissioner of Income Tax (Appeals) and Tribunal available on record. 5. On perusal of documents placed before this Court, it is evident that while Commissioner of Income Tax (Appeals) based his findings on judgment of Supreme Court in Vishnudatta Antharjanam's case (supra), Tribunal has arrived at findings on basis of judgment of Supreme Court in Ambat Echukutty Menon's case (supra). There is no quarrel about law laid down by Supreme Court in above referred two decisions. This Court, on facts, finds that there is no error in order of Tribunal warranting interference at hands of this Court as abovesaid judgments of Supreme Court is clearly applicable to facts of present case. 6. Accordingly, this Court finds that there is no question of law, much less substantial question of law that arises for consideration in this appeal. appeal, being devoid of merits, is accordingly dismissed. (R.S.J.) (G.M.A.J.) 08.09.2014 Index : Yes/No Internet : Yes/No GLN 4 To Commissioner of Income Tax Coimbatore. 5 R.SUDHAKAR, J. AND G.M.AKBAR ALI, J. GLN T.C.A. NO. 728 OF 2014 08.09.2014 Commissioner of Income-tax, Coimbatore v. M/s. Peria Karamalai Tea & Produce Co. Ltd
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