9911796707
TMI Blog2022 (5) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... ee on their alternative pleas were also held eligible for exemption under section 10(37) of the Act as the land was compulsorily acquired by Government of Gujarat by completing statutory formalities under Land Acquisition Act, 1882. The land was used for agriculture purpose for two years prior to its acquisition. And the assessee(s) fulfilled all the requisite condition for seeking exemption under section 10(37) of the Act. The other addition made under the head capital gains against the cost of pucca structure, the assessee s was allowed 60% as cost of acquisition or cost of improvement, against the relief of 50% as allowed by Ld. CIT(A). Further, in some cases, the agricultural income offered by assessee(s) were treated as income fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... compulsory acquisition of land. 2. It is therefore, prayed that the above penalty levied by the assessing officer and confirmed by the CIT(A) may please be deleted. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal. 2. Facts as extracted from the orders of the lower authorities are that the land of aforesaid individual assessee was acquired by Special Land Acquisition Officer, Surat for M/s Essar Steel Ltd. The Revenue / Assessing Officer made re-opening in this case under section 147 of the Income Tax Act, 1961 (in short, the Act). Assessment was completed under section 144 r.w.s. 147 of the Act in this case on 08/03/2013. The Assessing Officer while pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leted vide order dated 26.04.2022. 4. On the other hand, the learned DR for the revenue supported the order of assessing officer and ld CIT(A). 5. We have considered the rival submissions of the parties and have gone through the orders of the lower authorities carefully in quantum assessment as well as in penalty matter. We find that against various additions made in the assessment, the assessee(s) filed appeal before Ld. CIT(A). The Ld. CIT(A) in quantum assessment, upheld the addition of capital gain on transfer of land. However, the income added under the head income from other sources against the pucca structure was changed to as income from capital gains . As the assessee was not allowed the cost of acquisition and improvement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other sources has been held as income from agricultural activities . Thus, in quantum appeals all the assessee was granted substantial relief in deleting major part of additions and only part of capital gains only on account of cost of improvement on pucca structure was partly upheld on estimation basis. Therefore, all substantial additions were either deleted or upheld only on estimation basis. In our considered view no penalty under section 271(1)(c) of the Act is leviable on this assessee. In the result, the grounds of appeal raised by the assessee are allowed. 7. In the result, this appeal of the assessee is allowed. Order pronounced in the open court on 4th May 2022 at the time of hearing of appeal. - - TaxTMI - TMITax - I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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