COMMISSIONER OF INCOME TAX Vs. NAGARAJA RAO

JUDGEMENT

(1.) THESE appeals are at the instance of the Revenue filed against the order of the Tribunal, Madras "D" Bench, dt. 22nd

(2.) THE facts of this case are as follows : The assessment of the assessees for the asst. yr. 1991 -92 was completed under While completing the assessment, the AO found that the assessee had claimed the sale proceeds of silver oak trees standing in the coffee estate as not liable to capital gains tax. The AO, relying on the decision of the Supreme Court reported in CIT vs. Jyotikana Chowdhurani & Ors. (1957) 32 ITR 705 (SC), assessed the net capital gains arising from the sale of silver oak trees at the assessees' coffee estate at Yercaud at Rs. 1,66,640, Rs. 1,66,640 and Rs. 8,10,000. Aggrieved against the assessment so made, the assessees preferred appeals before the CIT(A).

(3.) THE appellate authority confirmed the assessment of capital gains on sale of shade trees, but reduced the quantum of capital gains to 30 per cent of the sale price of the trees. In respect of the assessees' claim for setting off of the loss arising from the fall in the value of the estate due to the removal of the shade trees, the appellate authority, though did not accept the claim, reduced the quantum of capital gains to 30 per cent of the total sale price. Aggrieved by the said order, the assessees took the matter on further appeal to the Tribunal. The Tribunal, relying on the earlier decisions, allowed the appeals of the assessees. Hence, these appeals are at the instance of the Revenue.