2022 (2) TMI 867

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....the Income Tax Act, 1961 (hereinafter the 'Act') for AY 2015-16. 2. Different dates were fixed for hearing, but none appeared on behalf of the assessee, hence we proceed to decide the appeal after hearing the Ld. D/R. 3. The Revenue has taken the following grounds of appeal: "1. That the Ld. CIT(A), Durgapur erred in deleting the addition of Rs. 5,48,43,584./- made by the A.O. on accounts of transfer of land (market value is Rs. 9,95,60,980/-) to NHAI. 2. In regard to ground No. 1, Sec. 50C is deeming provision and there is no reference for unaccounted receipts as stated by CIT(A)-Durgapur. There is no exception u/s. 50C of the IT Act 1961, in regard to compulsory acquisition, the only exception is reference ....

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....pect of the above transaction. 4. The assessee vide letter dated 06.12.2017 submitted that the amount of Rs. 4,47,1,7,396/-. was received as compensation provided by NHAI on compulsory acquisition of land. The NHAI also deducted TDS u/s. 194 LA of the IT Act on the said payment to the assessee. 5. On-going through the submission, I found that the contention of the assessee is not acceptable." 4.1. After the order of the Ld. assessing authority, the Ld. CIT(A) has made the following observations against the order of the A.O. which are as follows: "4.2. A similar question was addressed by the Hon'ble ITAT Hyderabad in Income-tax Officer Vs. Southern Steel Ltd. (ITAT Hyderabad) ITA No. mo/Hyd/2016 for the AY 2....

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....ced in the Statute, so as to at least adopt the market value of the State Revenue Authority as the sale consideration for the purpose of computing Capital Gain under the provisions of the Act. Further, to avoid genuine hardships to the assessee, the provisions of Section 50C(2) of the Act provided for referring the matter to the Valuation officer of the Revenue to determine the actual market value of the immovable property sold by considering all the relevant factors which may not have been considered by the State Valuation Authority. In the case of the assessee, the value of the property is already determined by the State Government which is nothing but the amount of Rs. 46,22,878/- coupled with certain TDS rights. It is pertinent to menti....

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....venue has mentioned that the amount of Rs. 7,41,00,000/- & Rs. 16,36,000/- in relation to shortage of coal and shortage of imported coal. The assessing authority has made the following observations in its appeal order: "6. Shortage of coal: On perusal of annual report, it is found that under the head quantity/value of raw materials consumed under worksheet to note 13, shortage of coal of 27,426.39 MT having value Rs. 7.41 Crores has been shown which is abnormally high whereas in A.Y. 2014-15, there has been surplus of coal to the extent of 18,450.24 MT. The shortage of coal claimed under the A.Y. in question as compare to excess on in the immediately preceding A.Y. is not justifiable. Further, for Coke Oven Plant shortage ....

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....to the total income. (Addition of Rs. 16.36 Lakhs)" 5.1. Against the assessment order, the Ld. CIT(A) has made the following observations: "5.3. On a consideration of facts as are apparent from the assessment order I find that the only reason why the A.O. has disallowed the claim made by the appellant is that there was no shortage of coal during the immediately preceding AY. This certainly cannot be a ground for making such disallowance. There could be 'n' - number of reasons for a shortage to occur. The A.O. ought to examined the circumstance in which such shortage was claimed to have occurred and on basis of such facts, he should have decimated the claims made by the appellant. If the logic given by the A.O. c....