TaxTMI 
TaxTMI 
2021 (7) TMI 1180
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....ation of mind by the PCIT, while granting the approval u/s. 151 for issuance of notice u/s. 148. 3. Notwithstanding the above said grounds of appeal, the notice issued in the status of individual is void ab initio, since the correct status is HUF as the land is ancestral. 4. Notwithstanding the above said grounds of appeal, the adoption of rate of land at Rs. 19000/- per kanal as on 1.4.1981 by the Assessing Officer and confirmed by the CIT(A) is against the facts and circumstances of the case and the rate of Rs. 70000/- to 85000/- per kanal in the other similar cases in the same Village has been upheld by the CIT(A) following the report of the revenue official and such orders have been accepted by the department. 5. That on the facts and in the circumstances of the case and in law, the learned CIT(A) erred in not relying upon the agreements to sell dated 18.02.2009 and 12.03.2009 for deleting the whole addition u/s. 54B on the basis that the same were not registered with the Revenue Authority. 6. That on the facts and in the circumstances of the case and in law, the learned CIT(A) erred in not giving more deduction u/s. 546 of the Act as the pay....
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....thinda has also passed the consolidated order in all the three cases as the facts are common and they belongs to one family. 2. It is the case of the assessee that all the above three assessees are agriculturists and do not have any other business income and not filing their Income tax returns, because they did not have any business or professional income either. They had inherited the land from their ancestral as per kursinama is placed at page 10, and English translation placed at page 10 of PB. 3. The issue arising in all the three appeals is that the father and two sons alongwith their mother had sold land in "Village Bhokhra" for a total consideration of Rs. 4.70 crores and which detail has been mentioned by the CIT(A) in para 2 of his order. The CIT (A) in order had mentioned as under:- 4. The notices u/s. 148 were issued to all the above persons, since they are not being assessed to tax on the basis of identical reasons which have been recorded and certified copy of reasons have been placed at pages 1 to 3 of the Paper Book. The notices u/s. 148 have been served upon them as per certified copies placed at pages 4 to 6 of the paper book. 5. The assessees filed the....
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....rther evident from the copy placed at pages 11 to 13 of Paper Book. c). The law on this issue is well settled by the Hon'ble Apex Court, which have been followed by the different Benches of the ITATs and High Courts and though, the gist of the cases on the above said issues of 'mechanical approval' have been enclosed in the paper book at pages 43 to 47, where the judgment of Hon'ble Apex Court in the case of CIT Vs. M/s. S. Goyenka Lime and Chemical Ltd. have been mentioned, besides the number of other judgments and that judgment has been followed in the following cases, placed in the paper book as under:- S.No. Name of the Case Placed at pages of PB Relevant pages 1. Smt. Charanjit Kaur 23-33 26,30,31 & 32 2. Sh. Tek Chand 34-42 40 & 41 3. Sh. Chhugamal Rajpal 110-115 110 4. Omkam Developers Ltd. 116-140 127,128, 133 & 137 5. N.C. Cables Ltd. 141-145 141 d). Thus, on the basis of above said judgments, it was submitted that the reassessment proceedings are void ab initio on account of 'mechanical approval' given by the PCIT and, therefore, the assessment deserves....
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.... Village Bhokhra, the same issue was there and the Assessing Officer during remand proceedings in other group of case of 'Village Bhokhra' confirmed the rate as on 1.4.1981 from the 'Revenue Authorities', wherein, the Assessing Officer have reported to the CIT(A) in other similar cases, the rate as on 1.4.1981 between Rs. 70000/- to 85000/- per kanal and the Ld. CIT (A) by following other cases where similar rate has been applied has allowed the appeal of the assessee and no appeal by the department. Copy of the order of CIT(A) in the case of 'Sh. Paramjit Singh' has been placed at pages 14 to 19 of the paper book and the relevant discussion starts from pages 17 to 19 and another case of Sh. Mander Singh, copy placed at pages 20 to 22 of the Paper Book and the same facts are there, which is evident from pages 21A of the Paper Book. In these two judgments and many other cases, where the rate of Rs. 70000/- to 85000/- per kanal has been adopted and, therefore, it is prayed that the average rate of Rs. 77500/- per kanal may, please, be adopted as applied in other cases. 13. The Ld. DR for the Department had relied upon the order passed by the lower authoriti....
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....he assessee, the Income-tax Officer has in consequence of information in his possession reason to believe that income chargeable to tax has escaped assessment for any assessment year. Unless the requirements of clause (a) or (b) of Section 147 are satisfied, the Income-tax Officer has no jurisdiction to issue a notice under Section 148. From the report submitted by the Income-tax Officer to the 40 of 43 Commissioner, it is clear that he could not have had reasons to believe that by reason of the assessee's omission to disclose fully and truly all material' facts necessary for his assessment for the accounting year in question, income chargeable to tax has escaped assessment for that year; nor could it be said that he as a consequence of information in his possession, had reasons to believe that the income chargeable to tax has escaped assessment for that year. We are not satisfied that the Income-tax Officer had any material before him which could satisfy the requirements of either Clause (a) or Clause (b) of Section 147. Therefore he could not have issued a notice under Section 148. Further the report submitted by him under Section 151(2) does not mention any reason for co....
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....sumption of jurisdiction is in accordance with law." 14. On the basis of the above said decision it was submitted by the Ld. DR that the reopening was made by the assessing Officer in accordance with law and there was no error in reopening of the case of the assessee before us. It was further submitted that the present case was reopened on done by the assessing officer on account of non-filing of the return of income and deposit of cash in the bank account. It was submitted that the decisions relied upon by the assessee are not applicable to the facts of the case. In any case it was submitted that once the decision of the jurisdictional High Court is available on the subject matter, then the same is required to be denied to by the parties. 15. The Ld. DR had not contradicted the application of the higher rate by the CIT(A) in the remand proceedings in the matter of 'Sh. Paramjit Singh' and Sh. Mander Singh(supra). However it was submitted that the matter requires confirmation by the lower authorities as to the application of the land rate. 16. We have considered the rival contention of the parties and perused the material available on record, including the judgment....
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....by the CIT(A), Bhatinda in the said case. Following the order of the CIT(A), Bhatinda dated. 1.3.2019 in appeal No. 309/IT/17-18 for A.Y. 2010-11 in the case of Sh. Gurdeep Singh s/o. Sh. Karamjit singh, Goniana Mandi, dist., Bhatinda, the A.O. is directed to re-compute the long term capital gain on the sale of 20 kanals of the impugned land by the appellant at bhokhra village, by adopting the value of land as on 1.4.1981 at Rs. 70,000/- per kanal as per report of the halka patwari submitted vide letter dated 4.2.2019 to the A.O. in the remand proceeding in the said cited case decided by the CIT(A), Bhatinda. As against this the A.O. had applied the rate of the impugned property in the year 1981 at Rs. 19000/- per kanal which is far too less than the rate quoted by the halka patwari of Rs. 70000/- to Rs. 85000/- per kanal as above. Therefore the addition made by the A.O. is deleted and the grounds of appeal are allowed. 6. In the result the appeal is allowed." Similarly it was held in the case of Mander singh as under "4.1 I have given careful consideration to the facts of the case and find that the report of Inspector dated 25.10.2017 is based on no m....