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TMI Blog2022 (2) TMI 867X X X X Extracts X X X X X X X X Extracts X X X X ..... have, similarly examined the import bills, dates of payments, dates of shipment to find out the exact quantity of coal imported by the applicant along with the opening stock, etc. These and similar facts could have led to a correct fact finding related to the purchase, consumption and stock of coal. Deprived of any fact, it is difficult to accept the AO's action which appear to be based on his own whims. Whims cannot be a ground for making addition to the income of the appellant. The additions made by the A.O. to the tune of ₹ 7.41 crores and ₹ 16.36 lakh on account of disallowance of shortage of coal at 27,426.39 MT of coal and 170.91 MT of imported coal is directed to be deleted. Appeal filed by the Revenue is dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f coal and shortage of imported coal respectively. 4. That the appellant craves leave to add, alter, amend, modify, substitute, delete and/or rescind all or any of the grounds of appeal on or before final hearing. 4. The first issue is related to Section 50C of the Act. The assessee received ₹ 4,47,17,396/- against the transfer of land at Dag No. 17733, Khatian No. 321 of Radhamadhavpur. The property was acquired by National Highway Authority of India. The point of the grievance is whether Section 50C is applicable or not in the case of compulsory acquisition. The assessing authority has drawn the following observations in his order which are as follows: 3. Application of section 50C of the I.T. Act. 1961: It is se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on'ble Bench has held against the applicability of Section 50C in a case of land transferred to Government. 4.3. In view of the above discussions I hold that the Ld. A.O. was not justified in invoking the provisions of section 50C of the Act on the land compulsorily acquired by the NHAI. As such, the Ld. A.O. is directed to recompute the Capital Gains without applying Sec. 50C to this case. As a result, this ground of appeal is allowed. 4.2. The land of the assessee was acquired by the NHAI and the transfer is by compulsory acquisition. The judicial inference was drawn by the Hon'ble Hyderabad 'SMC' Bench of the Tribunal in ITA Nos. 1680/Hyd/2018 1681/Hyd/2018 order dated 22.07.2020 wherein the Hon'ble Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actually transferred their immovable property consisting of land and building but have only transferred their right to receive the amount of the compensation of ₹ 46,22,878/- and the TDR rights and both these asset do not fall under the category of immovable property. Further there is no finding by the Ld. Revenue Authorities that the market value of the TDR rights received by the assessees coupled with the amount of ₹ 46,22,878/- is at par with the SRO value of the property. It is also evident that the transaction is a distress transaction causing mental agony due to loss arising out of land acquisition and wastage of land. Keeping in view of all these facts and circumstances of the case, I am of the considered view that the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the assessee to explain the same. 6.1. The assessee vide letter dated 16.12.2017 submitted that shortage to the tune of 27,426.39 MT of coal as raised in query is actually surplus as shown in the annual account for the F.Y. 2014-15. Accordingly, relevant decision of the 597th meeting BOD of DPL, held on 18.08.2015, copy of which has been furnished. 6.2. I have considered the submission of the assessee and gone through the notes of the board meeting 18.08.2015. It is pertinent to note that Annual a/c of the assessee is dated 14.10.2015 which is later than Board meeting dated 18.08.2015. In the 54th Annual Report, shortage of coal is clearly mentioned in worksheet to note 13. Hence, explanation of the assessee is not found to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. The A.O. should have first of all examined the reason why the loss happened. Was there a shortage of funds that the coal could not be purchase? Was there any mishap due to which the coal could not reach the factory premises? What was the position of expenses on account of purchase and transportation related to coal as compared to the A.Y. 2014-15? Was there any malfunctioning in the factory unit which led to more consumption of coal and what were the actions taken by the appellant company to tide over the crisis? Since there was a shortage of coal did it impact the production? In the case of imported coal, the A.O. could have, similarly examined the import bills, dates of payments, dates of shipment to find out the exact quantity of co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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