2020 (9) TMI 320

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....circumstances of the case and in law, the ld. AO has erred in reopening the assessment U/s 147 of Income Tax Act, 1961. The action of the ld. AO is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the reassessment proceedings being illegal and without jurisdiction. 2. In the facts and circumstances of the case and in law, the ld. AO has erred in issuing notice u/s 148 of Income Tax Act, 1961 without obtaining proper sanction u/s 151 of the Income Tax Act, 1961. The action of the ld. AO is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the reassessment proceedings being illegal and without jurisdiction. 3. In the facts and circumstances of the case and in law, the ld. CIT(A) has erred in confirming the action of the ld. AO in determining the long term capital gain of Rs. 18,89,362/-. The action of the ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by deleting the entire addition of Rs. 18,89,362/-. 4. In the facts and circumstances of the case and in law, the ld. CIT(A) has er....

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.... this issue raised by the assessee cannot be decided. Further, the assessee except raising this ground, has not pointed out as to how the reopening of the assessment is invalid. Hence, in view of the fact that the assessee has never objected to the validity of the reopening either before the A.O. or before the ld. CIT(A) and has not sought any leave of this Tribunal to raise such a fresh plea/ground first time, therefore, we reject grounds No. 1 and 2 of the appeal raised by the assessee. 6. Ground No. 3 to 5 of the appeal are regarding addition on account of long term capital gain of Rs. 18,89,362/- made by the A.O. The facts emerging from the record are that the assessee is an individual and not filed any return of income U/s 139 of the Income Tax Act, 1961 (in short, the Act). The A.O. received information regarding sale of immovable property by the assessee alongwith two other co-owners for a sum of Rs. 10.00 lacs shown in the sale document. However, the Stamp Value Authority has determined the value of the property at Rs. 71,13,637/-. The A.O., accordingly, issued a notice U/s 148 of the Act on 26/09/2016 which was duly served upon the assessee. In response to the notice....

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.... of which is enclosed herewith, accepting it to be bare agricultural land and therefore, for the purpose of section 50C of IT Act, the value of agricultural land, on identical facts, could only be applied. The rate of bare agricultural cannot be Rs. 57,19,400/- for the total land in any case. On the facts and considering the statutory position determined and decided by the SDM, Rajgarh, Id. AO was not justified in adopting share of the appellant in fair market value of sold agricultural land at Rs. 19,06,466/-(i.e. 1/3rd of total value of Rs. 57,19,400/) and taking long term capital gains at Rs. 18,89,362/-. Return of income in this case was submitted declaring capital gain of Rs. 1,91,360/- on 1/3rd Share in sold agricultural land. The total land was sold for Rs. 10,00,000/-. As submitted in submission for ground No. (1) above, the Sub-Divisional Magistrate, Rajgarh (Churu) had recorded the current position in respect of nature and use of sold land as per order cum description of work dated 30.10.2012 that on spot verification, it was found that land is ready for use of agriculture. More so when basic rate of agricultural land for the year 1981-82 was ap....

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....as under: "4.3 I have carefully considered the material before me. I find that the Assessing officer made the addition of Rs. 16,98,023/- making observation in assessment order that the assessee presented a conveyance deed for registration on 14-01-2013 before Sub-Registrar Rajgarh District- Churu for sale of land bearing Khasara No 327 having 1/3 share in the proposed land for the sale consideration of Rs. 10,00,000/-. On receipt of the said conveyance deed, the State Authority inspected the property on 20-012013. On inspection of the land in question, the State Authority found the nature of property as residential and commercial. More over the property is located within 1/2 Km. of Municipal limits of Rajgarh and at 70 Meters distance at Rajgarh - Hissar Road. Looking to the nature of land i.e. residential and commercial, the Sub Registrar referred the matter to DIG (Stamps), Bikaner with copy of inspection report and valuation report (after visit of property). After considering the inspection report and valuation report submitted by Sub-Registrar, the DIG (Stamps), Bikaner after providing due opportunities to the transacting parties determined the cost of land at Rs. 71,....