9911796707
TMI Blog2024 (3) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... Merely because the Assessing Officer did not write specific reasons for accepting the explanation of the assessee cannot be reason enough to invoke powers under section 263, and non-mentioning of these reasons do not render the assessment order erroneous and prejudicial to the interest of the revenue - Appeal of the assessee is allowed. - Shri Rajesh Kumar, Accountant Member And Shri Sonjoy Sarma, Judicial Member For the Assessee : Shri Ashish Kr. Agrawal, CA For the Revenue : Shri Rupesh Agrawal, Addl. CIT, Sr. DR ORDER PER SONJOY SARMA, JM: The appeal of the assessee for the assessment year 2016- 17 is directed against the order dated 25.02.2021 passed by the ld. Pr. Commissioner of Income-tax 1, Patna [hereinafter referred to as the ld. CIT(A) ]. The assessee has raised the following grounds of appeal: 1. For that the Learned Commissioner of Income Tax has erred in invoking power u/s 263 of the Income Tax Act and has also erred in cancelling the order passed u/s 143(3) by the Assessing Officer. 2. For that the Learned Commissioner of Income Tax has erred in passing order u/s 263 of the I.T. Act on mere change in opinion. 3. For that the Learned Commissioner of Income Tax has e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own in TDS return filed by acquirer but the assessee did not declare any capital gains in its ITR. Accordingly, statutory notices were issued to the assessee and in compliance to such notices, assessee has furnished the following documents at the time of hearing before the AO: i. Assessee is a farmer and the land which was compulsory on acquisition and compensation received u/s 3(E) of the National Highway Act, 1956 by the Govt. of India. ii. Assessee and his family were engaged in agricultural activities. iii. Income arisen from the compensation or consideration for such transfer received by the assessee on different dates mentioned. iv. Proof of agricultural land and type of compensation received enclosed for reference. v. It is compulsory acquisition of land (news paper cutting attached for the same as announced in the Gazette of India for compulsory acquisition. 3. The ld. AO on examination of the submission and papers submitted by the assessee satisfied that the capital gains earned on alleged agricultural land exempt u/s 10(37) of the Act. Soon after completion of the assessment, the ld. PCIT, Patna subsequently initiated the proceeding u/s 263 of the Act by issuing show caus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Act, 2013: Section 96 mandates that no Asha Devi L/H of Late Gayan Chand Prasad Income-tax shall be levied on any award made under the Act except under Section 46. Section 46 deals with the purchase of land by a person other than a Specified person through private negotiations. The benefit of Section 96 is not available when a land is purchased through private negotiations by a person other than a specified person under Section 46(1). The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 ( New Act of 2013 ) came into force from January, 2014 repealing the erstwhile Land Acquisition Act, 1894 ( LA Act 1894 ). Section 24(2) of the 2013 Act. Retrospective Application: Provisions under the 2013 Act Section 24(1) of the 2013 Act provides that the Act will not be applicable cases where an award has been made under section 11 of the old Act. Further, section 24(2) of the 2013 Act starts with a non-obstante clause and provides- Section 24(2) of the RFCTLARR Act 2013 Notwithstanding anything contained in sub-section (1), in case of land acquisition proceedings initiated under the Land Acquisition Act, 1894, where an award under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndigarh) (Trib.) The tax effect because of an order passed by the Assessing Officer is NIL such order even if erroneous being not prejudicial to the interests of the Revenue, is not open to revision under section 263 of the Act. In our Case, Assessing officer has made order u/s 143(3) dated 29/12/2018 with hearing dates from 16/08/2018 to 04/12/2018 in order no. ITBA/AST/S/143(3)/2018/1014656805(1) duly make assessment proceedings and order of NIL (0/) demand. Such order even if erroneous being not prejudicial to the interest of the revenue is not open to revision u/s 263 of the Income Tax Act, 1961. Hon ble Sir, Accept out appeal to revoke the proceeding u/s 263 of the Income Tax Act, 1961 and to make the order of AO correct. 6. However, after examining the contention made by the assessee, ld. PCIT did not satisfy with the submission made by the assessee and setting aside the assessment order passed by ld. AO with the direction to him to frame the assessment order de novo by framing fresh enquiries and verification regarding the above issue involved. At the time of hearing the ld. counsel for the assessee contended that assessment proceeding framed by the AO on 29.12.2018 has alre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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