TaxTMI 
TaxTMI 
2016 (4) TMI 375
X X X X Extracts X X X X
X X X X Extracts X X X X
....as obtained information from Nagpur Improvement Trust that the said land is within 8 Kms i.e., 6.87 Km from the Nagpur Municipality. 2. 1. On the facts and circumstances of the case and in law, the CIT(A) erred in holding that the agricultural land which is within 8 Kms from municipal limits is not a capital asset. 2. Facts in brief as emerged 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... do any agriculture on the land. The total retention period of the said land was only approximately 7 months, and assessee has not shown any agricultural activities on the above said lands. Hence amount of profit on sale of land of Rs. .34,00,000/- is to be taxed as Short term capital gains. Penalty proceedings u/s 271(1)(c) are hereby 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 q....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... asset. Accordingly, the AO is directed to allow exemption u/s 2(14) in respect of the agricultural land as claimed by the appellant." 4. From the side of the Revenue, learned D.R. Mr. C.W. Awagulkar appeared and vehemently argued that learned CIT(Appeals) has totally erred in taking a decision that the land in question 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 precede....
X X X X Extracts X X X X
X X X X Extracts X X X X
....llow 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. There are circumstances where the 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 tha....