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TMI Blog2022 (3) TMI 777X X X X Extracts X X X X X X X X Extracts X X X X ..... der RFCTLARR Act. Therefore, as per the CBDT Circular and as per section 96 of RFCTLARR Act, income tax shall not be levied. We are of the firm view that the compensation amount which was received by the assessee for an amount should not be suffered for capital gains tax. Therefore, we set aside the order passed by the Ld.Pr.CIT u/s 263 as erroneous. Hence, we allow the appeal of the assessee. - I.T.A.No.131/Viz/2021 - - - Dated:- 16-3-2022 - Shri Duvvuru RL Reddy, Hon ble Judicial Member And Shri S Balakrishnan, Hon ble Accountant Member For the Appellant : Shri GVN Hari, AR For the Respondent : Shri MN Murthy Naik, CIT (DR) ORDER PER SHRI DUVVURU RL REDDY, JUDICIAL MEMBER : This appeal is filed by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing aside the assessment order passed by the AO dated 29.12.2018 and gave direction to the AO to pass necessary order by bringing the long term capital gains earned by the assessee for taxation. 3. On being aggrieved, the assessee preferred an appeal before us and raised the following grounds : 1. The order of the learned Principal Commissioner of Income Tax is contrary to the facts and also the law applicable to the facts of the case. 2. The learned Principal Commissioner of Income Tax is not justified in assuming jurisdiction u/s 263 of the Act in as much as the assessment order dated 29.12.2018 u/s 143(3) of the Act is neither erroneous nor prejudicial to the interests of revenue. 3. The learned Principal Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acquisition of land. It is further submission of the assessee that the CBDT had issued circular on 25.10.2016, wherein, it is clearly mentioned that income tax shall not be levied on any award or agreement made under RFCTLARR Act. Therefore, the compensation received for compulsory acquisition of land under RFCTLARR Act is exempted from the levy of income tax. Therefore, the amount of ₹ 1,33,88,000/- is not subject to capital gains tax. Hence, the order passed by the Ld.Pr.CIT is erroneous and the Ld.Counsel for the assessee pleaded that the order passed u/s 263 is to be quashed. 6. On the other hand, the Ld.DR submitted that the assessee has not raised this issue before the Ld.Pr.CIT during the 263 proceedings. He further submits ..... X X X X Extracts X X X X X X X X Extracts X X X X
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