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TMI Blog2023 (9) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... was made whether such agricultural income was with respect to the land which was sold by the assessee during the impugned year under consideration, against which the assessee has claimed deduction under section 54B - As observed that the assessee has not made any specific enquiry with regard to the land use prior to its date of sale i.e. whether the land which was sold was used for agricultural purposes or not. On perusal of the assessment records, it is seen that no specific details regarding the land use was submitted before the assessing officer during the course of assessment proceedings. Therefore, we are of the considered view that adequate enquiries were not made by the assessing officer during the course of assessment proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner of Income-tax-3, Rajkot erred in setting aside the assessment order framed u/s 143(3) of the Act by holding that assessment order passed by the assessing officer was erroneous and prejudicial to the interest of revenue. 3. The learned Principal Commissioner of Income-tax-3, Rajkot failed to appreciate that necessary inquiries were made by the assessing officer during assessment proceedings u/s 143(3)in respect of claim of deduction u/s 54B of the Act and hence the order could not have been considered as erroneous u/s 263. 4. The appellant craves leave to add, amend, alter and withdraw any ground of appeal anyti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee must establish that the land should be used for agricultural purposes for a period of 2 years prior to the date of transfer. However, the assessee has not produced any documentary evidence to substantiate the claim under section 54B that the land was used for agricultural purposes. Further, the Principal CIT observed that the assessee had purchased the land on 16-09-2010 and thereafter, the land use was converted into non-agricultural use on 02-01-2014 and the land was sold to a non-agriculturalist by way of sale deed dated 07-04-2014 as a non- agricultural land. Accordingly at the time of registration of sale deed, the land was not an agricultural land. However, in the assessment proceedings the assessing officer has not gone beyond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o proceedings under section 263 of the Act. 6. In response, the Ld. DR pointed out that the assessee had submitted reply to the queries raised by the assessing officer only at the fag end of the close of assessment proceedings i.e. on 15-11-2017 and again on 05-12-2017 and the assessment order was passed on 27-12-2017. Accordingly, it was submitted by the Ld. DR that the assessing officer did not get adequate time or opportunity to make detailed enquiries during the course of assessment proceedings, since the assessee has filed the details only at the fag end of the assessment proceedings. Therefore, on perusal of the assessment records, it is evident that the assessing officer did not make due enquiries as to the use of land prior to it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer during the course of assessment proceedings. Therefore, we are of the considered view that adequate enquiries were not made by the assessing officer during the course of assessment proceedings in respect of satisfaction of the conditions of eligibility to claim of deduction under section 54B of the Act. We are of the considered view that s Principal CIT has correctly observed that during the course of assessment, the assessee only produced copy of 7/12, which does not establish the actual use of land for agricultural purposes, so as to claim benefit of deduction under section 54B of the Act. Accordingly, looking into the facts, we find no infirmity in the order of Principal CIT so as to call for any interference. 8. In the result, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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