JAGDISH PRASAD GUPTA Vs. CIT

JUDGEMENT

(1.) Introduction These are nine appeals under section 260A of the Income Tax Act, 1961 ('Act'), one by the Assessee and the others by the Revenue, directed against orders of the Income Tax Appellate Tribunal ('ITAT') which pertain to Assessment Years ('AY') 1997-98 to 2002-03, 2004-05, and 2009-10. In the appeals by the Revenue, cross-objections (C.O.) have been filed by the Assessee, i.e. Shri Jagdish Prasad Gupta, the proprietor of Pradeep Oil Corporation.

(2.) By an order dated 12th December, 2012, this Court had directed that the ITA No. 711 of 2011 pertaining to AY 1997-98 should be treated as the lead case. There is a common order of the ITAT dated 31st July, 2009 in the appeals filed by the Revenue for A.Ys 1997-98 to 2002-03. The Revenue's appeals for these A.Ys are ITA Nos. 711/2011, 787/2011, 936/2011, 934/2011, 933/2011 and 935/2011 respectively. For AY 2003-04, no appeal was filed by the Revenue. As regards AY 2004-05, the Revenue has filed ITA No. 1535/2010 and the Assessee has filed ITA No. 695/2010 against the order of the ITAT dated 22nd January, 2010. There is another appeal, being ITA No. 424/2016, filed by the Revenue against the order dated 1st February, 2016 passed by the ITAT for AY 2009-10. The details in a tabular form of the relevant AY and the corresponding C.O./appeal by the Assessee and appeal by the Revenue are as under: <IMG>JUDGEMENT_120_LAWS(DLH)8_2017.jpg</IMG> Background facts

(3.) The Assessee is the sole proprietor of M/s Pradip Oil Corporation. The Assessee, by way of an agreement dated 15th March 1975, was granted licence by the Northern Railway for use of a piece of Railway land measuring 41280 sq. ft. at a licence fee of Rs. 20,640/- per annum (p.a.). By another agreement, dated 3rd January 1978, the Assessee was granted licence for use of a further 62,156 sq. ft. of Railway land at a licence fee of Rs. 31,078/- p.a. An additional land of 2329 sq. ft. (equivalent to 216.35 sq. m.) was further granted under a memorandum. Thus the aggregate land measuring 9828.21 sq. m. (1,05,765 sq. ft.) was thus allotted at a licence fee of 50 paise per sq. ft. p.a.