2018 (2) TMI 1715

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... late Madappa, who expired during the pendency of the said proceedings before the learned Commissioner but the fact of the death of the said person on 21.04.2016, does not appear to have been brought to the notice of the 1st Respondent-Prl.Commissioner of Income Tax during the pendency of the said proceedings. 2. The said petition under Section 264 of the Income Tax Act, 1961 therefore filed by the assessee aggrieved by the order passed by the Assessing Authority for A.Y.2006-07 seeking to tax the Long term capital gains on the sale of agricultural lands by entering into the Joint Development Agreement with M/s.Skill Tech Engineers and Contractors on 25.01.2006 of the agricultural lands situated in Sy.No.119, Part, measuring 1 Acre 22&fr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he non- compliance to the notices issued to the assessee, the Assessing Authority was left with no other option except to complete the assessment under section 144 of the act to the best of his judgment based on the materials available on record. Similarly, for the defaults committed by the assessee for non-compliance of notices and also not disclosing the income to the Department, the assessing officer had levied the penalties under respective Section of the Act. 7. The assessee has claimed that only 1/3rd of the total sale consideration should have been assessed in the hands of the assessee since his was a joint family and also his share of sale consideration received has been utilized for purchase of agriculture land for which h....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 9. However concealment penalty under section 271(1)(c) of the act is also levied in this case, although none represented the applicant. Considering the facts and circumstances of the case, it is just and fair to afford another opportunity to the applicant so as to comply with principles of natural justice. In view of this the order passed under section 271(c) of the act is set aside and restored to the file of the assessing officer, with a direction to provide adequate opportunity of hearing to the applicant before concluding the concealment penalty proceedings. Sd/- D. Vishnuvardhana Reddy, IRS Pr. Commissioner of Income-Tax Mysuru" 6. The learned counsel for the petitioner Ms.M.R.Vanaja submitted that ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ions under Section 264 of the Act was filed by them within a year of passing of the impugned assessment order on 21.03.2014 namely, on 09.03.2015 and 17.03.2015, shows that the petitioners-assessees were very well guided about the relevant provisions of the Income Tax Act and for the reasons best known to them, they avoided the appellate remedies provided in the Act. 10. Even otherwise, the ignorance of law is no excuse and no such presumption as prayed for, can be drawn in favour of the petitioners-assessees. The remedy by way of a revision under Section 264 of the Act obviously lies in a narrow compass and the said remedy cannot be treated as a regular remedy bypassing the regular remedy of appeals against the impugned assessment order....