Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
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The ITAT dismissed the assessee's appeal. It upheld the revisional order passed by the PCIT u/s 263, setting aside the original assessment order which had erroneously allowed deduction u/s 54B. The ITAT observed that the AO failed to inquire whether the capital asset was used for agricultural purposes for two years immediately preceding the transfer, a prerequisite for claiming deduction u/s 54B. The PCIT had obtained a report substantiating that no agricultural activities were carried out during the relevant period on the properties sold and purchased by the assessee. Relying on the precedent in Ramanbhai Bholidas Patel, the ITAT held that s.54B deduction is not applicable if the land was not used for agricultural purposes in the two years preceding the transfer date.
The ITAT dismissed the assessee's appeal. It upheld the revisional order passed by the PCIT u/s 263, setting aside the original assessment order which had erroneously allowed deduction u/s 54B. The ITAT observed that the AO failed to inquire whether the capital asset was used for agricultural purposes for two years immediately preceding the transfer, a prerequisite for claiming deduction u/s 54B. The PCIT had obtained a report substantiating that no agricultural activities were carried out during the relevant period on the properties sold and purchased by the assessee. Relying on the precedent in Ramanbhai Bholidas Patel, the ITAT held that s.54B deduction is not applicable if the land was not used for agricultural purposes in the two years preceding the transfer date.
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