Commissioner Of Income Tax vs Officer In Charge, Secunderabad.

This appeal on a certificate of fitness granted by the High Court of Andhra Pradesh, is directed against the judgment of the High Court dt. 5th February, 1976 in R.C. No. 33/70. The following question was referred for opinion to the High Court :

"Whether on the facts and in the circumstances of the case lands situated at Begumpet, Lallaguda, Sabzimandi, Yerraguda, Zambur Khana, Vicarabad were agricultural land within the meaning of s. 2(e)(i) of the WT Act."

2. From the perusal of the record, it transpires that the Appellate Tribunal has held that the lands are agricultural in nature. On reference at the instance of the Department, the High Court answered the question in favour of the assessee and held that the lands are agricultural. In taking this view, the High Court followed the Full Bench decision in the case of the same assessee for the earlier assessment years reported in Officer-in-charge (Court of Wards) vs. CWT (1969) 72 ITR 552 (AP) (FB). The judgment in that earlier case reported as Officer-in-charge (Courts of Wards) vs. CWT (supra) was questioned in appeal before this Court and this Court set aside the judgment of the Full Bench and remanded the matter to the Tribunal for appropriate orders after giving opportunities to both sides to lead further evidence, if they so desired, and for the decision of the case in accordance with the law as declared by the Court. That judgment is reported in CWT vs. Officer-in-charge (Courts of Wards), Paigah (1 (1976) 105 ITR 133 (SC) at 144). It was held :

"...... We think that this is a fit case in which we should set aside the judgment of the Full Bench of the High Court and hold that the Tribunal should determine afresh, from a correct angle, the question of fact whether any of the lands under consideration were "agricultural" or not for the purposes of the Act before it. Accordingly, we allow these appeals, set aside the judgment and order of the Full Bench and send back the cases to the Tribunal for appropriate orders for giving opportunities to both sides to lead further evidence, if they so desire, and for the decision of the cases in accordance with the law as declared now by this Court. The parties will bear their own costs throughout."

3. In view of the law declared by this Court (supra) this appeal is allowed and the impugned judgment of the High Court is set aside. The case is sent back to the Tribunal for appropriate orders in the light of the observations made by this Court in Officer-in-charge (Courts of Wards) vs. CWT (supra). The Tribunal shall grant opportunity to both sides to lead further evidence, if they so desire. There shall, however, be no order as to costs.