2022 (5) TMI 1281

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....47 of the Income Tax Act, 1961 (hereinafter the 'Act') vide order dated 11.02.2014. 2. The only issue in this appeal of assessee is as regards to revision order of PCIT that PCIT has erred in revising the assessment order framed u/s.143(3) r.w.s. 147 of the Act, as the AO has conducted enquiry in regard to the nature of land sold by assessee that being agricultural land. For this, assessee has raised the following three grounds:- 1. The order of the Hon'ble Commissioner of Income-Tax is erroneous in law and contrary to the facts and circumstances of the case. 2. The Hon'ble commissioner of Income-Tax has erred in setting aside the original order of assessment passed by the Learned Income-tax Officer, Business ward III(3....

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....t, this court is of the view that the matter can be remanded back to the Tribunal for fresh decision on merits, after affording an opportunity to the Assessee. 7. For the above reasons, the Tax Case Appeal is allowed, the impugned order is set aside and the matter is remanded back to the Tribunal for fresh decision on merits. The Tribunal may issue appropriate directions to the Revenue to produce the entire Assessment file, and after affording an opportunity of hearing to the assessee, take a decision on merits in accordance with law. Consequently, the substantial questions of law are left open. No costs. Connected miscellaneous petition is closed." 4. On query from the Bench, the ld. Senior DR stated that he is ready with the a....

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....essment accepted the argument of assessee that the land is agricultural land and not fall under the definition of capital asset in term of section 2(14) of the Act and exempt from long term capital gain. 5. The PCIT while going through the assessment proceedings noted that the AO has simply concluded the assessment without proper enquiry, application of mind and due verification. The PCIT also noted that the assessment record do not contain the details of crops harvested and details of sale of agricultural harvest along with expenses incurred. Thus in the opinion of PCIT, the assessment framed is erroneous and prejudicial to the interest of Revenue. Therefore, he invoked the provisions of section 263 of the Act and set aside the assessme....

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....cording to law. According to the ld. Senior DR, the order of revision passed by PCIT may be upheld. 7. We have heard rival contentions and gone through facts and circumstances of the case. Admittedly, the assessee has carried out agricultural activity which is assessee's family traditional vocation. It is clear that in the sale deed 3373 of 2005 & 5569 of 2005, the properties clearly defined as agricultural land in the schedule of property. Even the AO during original assessment proceedings noticed the chitta and adangal i.e., records for the relevant Fasli year and same was accepted by the AO during assessment proceedings. The assessee has cultivated this land and grown paddy from 2001 to 2004 and for this produced a copy of the adangal....