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TMI Blog2024 (3) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... case. 4. For that the order passed u/s 263 is without jurisdiction and ab-initio void. 5. For that the Learned Commissioner of Income Tax has failed to appreciate that the order passed by the Assessing Officer was neither erroneous nor prejudicial to the interest of revenue and thus the very invocation of power u/s 263 is wholly illegal and beyond jurisdiction. 6. For that the Learned Commissioner of Income Tax has erred in invoking power u/s 263 and passing order holding the order of assessment to be erroneous and prejudicial even without pointing out which of the two phraseology used in the section is applicable to the appellant's case. 7. For that the Learned Commissioner of Income Tax has failed to appreciate that the Assessing Officer has passed the order after conducting proper inquiry and investigation and after due application of mind and thus the order passed could not be said to be either erroneous or prejudicial to the interest of revenue. 8. For that the Learned Commissioner of Income-tax has erred in holding that order u/s 143(3) by the Assessing Officer is erroneous in so far as it prejudicial to the interests that exemption from tax labiality laid down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived total compensation amounting to Rs. 1,62,33,976/- towards acquisition of land under section 3(E) of the National Highway Act, 1956 from the Govt. of India. The assessing officer in his order accepted the claim of non-taxability of compensation relying on the provision of the RFCTLAAR Act read with Circular No. 36/2016 dated 25.10.2016 issued by CBDT. It is noted that assessee received compensation in pursuance of NHAI Gazette notification published on 9th October, 2009 and subsequent notification by Govt. of Bihar in the gazette of India dated 14.01.2013 whereas the RFCTLAAR Act came into farce from 1st January, 2014. Therefore, the exemption from tax liability laid down in the RFCTLAAR Act is not applicable to the assessee's case. In view of the above, it was found that the assessing officer erroneously allowed the exemption from taxability of capital gain arising out of compensation. Accordingly, the assessment order u/s 143(3) of the I.T. Act, 1961 dated 29.12.2018 was found to be erroneous in so far as it is prejudicial to the interest of revenue within the meaning of section 263 of the Income-tax Act, 1961." 4. In response to the notice of the ld. PCIT, assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the commencement of this Act but the physical possession of the land has not been taken or the compensation has not been paid the said proceedings shall be deemed to have lapsed and the appropriate Government, if it so chooses, shall initiate the proceedings of such land acquisition afresh in accordance with the provisions of this Act: Provided that where an award has been made and compensation in respect of a majority of land holding has not been deposited in the account of the beneficiaries, then, all beneficiaries specified in the notification for acquisition under section 4 of the said Land acquisition Act, shall be entitled to compensation in accordance with the provisions of this Act." Hence, the benefit under the provisions of the 2013 Act as per the above-stated statutory provision is being given in the cases wherein the award has been made under the provisions of the old Act five years (5) or more prior to the commencement of the 2013 Act (i.e. ort or before 01.01.2009) but the compensation has not been paid or the physical possession of the property has not been taken." 5. Similarly on 29.01.2021 assessee filed its reply before the ld. PCIT under following manner: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue as alleged by ld. PCIT in his order. In this regard, he invited to our attention to the assessment order framed by the ld. AO where the observation was made at page no. 2 in the following manner: "On perusal of submissions and paper filed by the assessee such as copy of receipts of agriculture land justifying papers, copy of the dreceipt of malguzari tax of agriculture work copy of indemnity bond, copy of receipt of land holder which was obtained from office of the Circle Officer, Patna with respect to the proof of ancestral property and also has produce document evidence such as copy paper cutting of Gazette of India for compulsory acquisition and the said land was shown agricultural land." 7. The ld. AR further stated that when the issue involved had already been examined by the AO while framing the assessment order and in the present case when assessee has already submitted of necessary supported documents as asked by the AO in order to prove facts in its favour and after satisfying the same, the ld. AO has thoroughly examined the issue by passing the assessment order as in the case of assessee. Therefore, there is no need to frame the assessment afresh in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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