2019 (5) TMI 1154 - AT - Income Tax

Condonation of delay of 110 days - filing of rectification u/s.154 - HELD THAT - ld A.R. has placed certain information on record to establish that the order of the CIT(A) is dated 31.8.2018 and the assessee filed a petition for modification and rectification of mistake before the CIT(A) invoking section 154 to consider the CBDT circular. The petition u/s.154 was disposed by the CIT(A) on 13.2.2019 received by the assessee on 22,.2.2019, and, therefore, as soon as the order was received, the appeal was filed before the Tribunal. Considering the reasons given in the condonation petition, I hereby condone the delay and admit this appeal for adjudication. Exemption 10(37) - rectification u/s.154 - exemption to the capital gains arising to an Individual or a HUF from compulsory acquisition of an agricultural land situated in specified urban limit, subject to fulfilment of certain conditions - CBDT circular No.36 of 2016 - Circular No.11011/30/2015-LA - compensation received for compulsory acquisition of land under the RFCTLARR Act (except those made u/s 46 of RFCTLARR Act), is exempted from the levy of income tax - HELD THAT - On consideration of the rival submissions, the department is duty bound to adhere to the instruction of the CBDT while disposing the proceedings before them. There is no dispute that both the circulars now referred by the assessee were not furnished before them. Therefore, they had no occasion to consider the same. Be that it may, looking to the facts and circumstances of the case, I consider it proper and justifiable that in order to render substantial justice, the matter needs to be restored back to the file of the AO to consider the CBDT Circular No.36 of 2016 and Circular No.11011/30/2015-LA before making denovo assessment. - Appeal filed by the assessee is allowed for statistical purposes.

Issues Involved:
1. Appeal against order of Commissioner of Income Tax(Appeals)
2. Delay in filing appeal before the Tribunal
3. Exemption from capital gains tax under RFCTLARR Act, 2013
4. Consideration of CBDT circulars by lower authorities
5. Restoration of matter to Assessing Officer for denovo assessment

Detailed Analysis:

1. Appeal against order of Commissioner of Income Tax(Appeals):
The appeal was filed by the assessee against the order of the Commissioner of Income Tax(Appeals)-2, Bhubaneswar dated 31.8.2018 for the assessment year 2015-16. The assessee raised grounds of appeal challenging the legality, excessiveness, and jurisdiction of the lower forums. The appellant sought quashing of the orders based on CBDT circulars and principles of law decided by the Hon'ble apex Court.

2. Delay in filing appeal before the Tribunal:
The appeal was belatedly filed before the Tribunal, late by 110 days. The delay was condoned based on the reasons provided in the condonation petition, allowing the appeal for adjudication.

3. Exemption from capital gains tax under RFCTLARR Act, 2013:
The assessee's property was compulsorily acquired by National High Way, and compensation was paid. The assessee claimed exemption from income tax under the RFCTLARR Act, 2013, and cited relevant CBDT circulars and the decision of the Hon'ble apex Court in support of the exemption.

4. Consideration of CBDT circulars by lower authorities:
The lower authorities did not consider the CBDT circulars presented by the assessee, leading to the appeal before the Tribunal. The assessee argued that the circulars exempted compensation received from compulsory acquisition of land from income tax, and the matter should be restored to the Assessing Officer for denovo assessment considering the circulars.

5. Restoration of matter to Assessing Officer for denovo assessment:
After considering the submissions, the Tribunal held that the matter needed to be restored back to the file of the Assessing Officer for considering the CBDT circulars and other provisions of law. The assessee was directed to submit the circulars, and the Assessing Officer was instructed to reevaluate the applicability of the circulars. The appeal was allowed for statistical purposes, and the matter was restored to the Assessing Officer for further assessment.

In conclusion, the Tribunal directed a reevaluation by the Assessing Officer considering the CBDT circulars, emphasizing the importance of adhering to instructions and ensuring substantial justice in the matter.

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