TaxTMI 
TaxTMI 
2012 (9) TMI 220
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....evity, we reproduce hereunder the grounds raised in appeal No.98/Hyd/2011 pertaining to the assessment year 2002-03 and deal with the facts as under:- "i. The ld. CIT (A) erred in holding that the reopening of the assessment made u/s 147 is valid. The ld. CIT (A) ought to have considered the fact that the notice u/s 147 is issued to the individual whereas the income is derived by HUF and even on that count notice is not valid. ii. The ld. CIT (A) erred in confirming the action of the AO in assessing the interest on compensation as the income of the individual whereas the property belonged to the ancestors of the appellant and is assessable in the assessment of the HUF. The ld. CIT (A) ought to have appreciated the evidence submitted befor....
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....AO however completed the assessment including the interest received as income of the assessee. The assessee being aggrieved by the order of the AO filed an appeal before the CIT (A). In course of hearing before the CIT (A), the assessee contended that the assessee had ancestral agricultural land belonging to the HUF at Gargeyapuram village in Kurnool District. The AP Government acquired 20.78 acres of land in the year 1999 and the land Acquisition officer awarded an amount of Rs.15,27,815/- as compensation for acquisition of land. 4. Not satisfied with the award of compensation by the Land Acquisition Officer, claim was made in Court of Law for enhancement of compensation and ultimately the dispute was settled by the order of Hon'ble Supre....
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....at in compliance to the notice issued u/s 148 of the Act, the assessee had brought to the notice of the AO that the compensation amount along with interest belongs to the HUF and cannot be considered at the hands of the assessee in his individual capacity. In this regard, the learned AR referred to page-31 of the paper book which is the note appended to the return in compliance with notice issued u/s 148. In the aforesaid note, the assessee has stated that the agricultural land acquired is an ancestral property and as such compensation awarded along with interest belonged to the HUF. The learned AR invited our attention to the order passed by the Land Reforms Tribunal, Kurnool wherein in para 6.1, the Land Reforms Tribunal has given a findi....
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....as observed that the agricultural land is an ancestral property and not a self acquired property. The pahani patrika also records the character of the land as ancestral property. When the assessee has taken a specific stand in the reassessment proceedings that the compensation awarded belongs to the HUF as the land acquired was an ancestral property belonging to the HUF, the AO was not justified in totally ignoring the claim of petitioner without examining it while completing the assessment. The CIT (A) has also not recorded any finding with regard to the ancestral character of the land acquired which is evidenced from the order of the Land Reforms Tribunal as well as pahani patrika which were produced before the revenue authorities. The CI....