TaxTMI 
TaxTMI 
TaxTMI 
2022 (3) TMI 1404
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..... 3. On the facts and in the circumstances of the case as well as law on the subject, the learned Commissioner of the income Tax has erred in violating the principles of natural justice by not the mentioning the grounds for initiating action u/s 263 of Income Tax Act,1961 in the show cause notice issued. As such the order passed u/s 263 is void ab-initio. The action of the Ld. CIT was wholly unreasonable, uncalled for the bad in law. 4. On the facts and in the circumstances of the case as well as law on the subject, the learned Commissioner of the Income Tax has erred in not passing a speaking order against the submissions of your appellant. As such, the order passed u/s 263 is void ab-initio. The action of the Ld CIT was wholly unreasonable, uncalled for the bad in law. 5. On the facts and in the circumstances of the case as well as law on the subject, that the order of u/s 263 is merely 'change in opinion'. The order u/s 143(3) r.w.s. 147 passed by the Ld AO does not in any way represent erroneous order. The action of the Ld. CIT was wholly unreasonable, uncalled for and bad in law. 6. On the facts and in the circumstances of the case as well as law on the subject, the le....
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....000). The re-assessment proceedings were dropped, by assessing officer, vide order dated 18.01.2016, on the ground that land sold in question was an agricultural land. 4. After this, Learned Principal Commissioner of Income Tax, (ld.PCIT), has exercised his jurisdiction under section 263 of the Income tax Act, 1961. The Ld PCIT, on examination of case records, noticed that during the year under consideration the assessee had sold immovable property (agriculture land) located at Block No.360, Baleshwar, Taluka: Palsana, Dist: Surat to Shri Rakesh kumar Dharam chand jain (non-farmer) for residential purpose at Rs.22,00,000/-. The assessee had made an application before the Dy. Collector Kamrej, authority to sell the property to non-farmer. The permission was granted for the above land by Dy. Collector, Kamrej on 20/03/2012 and registered deed was executed on 30.03.2012, in the office of sub-registrar, Palsana, Surat. It was clearly mentioned in the registered sale deed as well as in Form No. 6 that the land was sold to nonfarmer for residential purpose after obtaining the order of Dy. Collector who had charged the premium thereon. Therefore, ld PCIT was of the view that said land wa....
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....2, as per Gam Namuno 6 entry No,5629 dated 07/11/2013. Hence, status of the land was agriculture land on 30/03/2012, when it was sold by the assessee and later on order for conversion of same into non-agriculture land has been passed in favor of purchasee Shri Rakeshkumar D. Jain. 3. Further as per letter issued by Superintendent of Stamp's Office, stamp duty on land should be charged on basis of purpose of use of property and hence in case of the assessee stamp duty has been charged and paid as per non agriculture futuristic use i.e., residence status of land instead of actual status of the land. 4. It is an accepted fact that Income Tax is on real income and not on fictitious assumption. The assessee has received Rs. 22,00,000/- as sale consideration and same has been offered for capital gain in return of income. 5. The Honorable Supreme Court has laid down various pre-conditions for invoking action U/s 263 in: 1. CIT v Max India Ltd (2007 LL 1101-3) 2. Malabarlnd. V CIT 243 ITR 830 The principals have been followed in various other jurisdictional pronouncements by the jurisdictional High Court and 1TAT: 1. Pr.CIT V. CLP India Pvt Ltd. (TA 593 of 2017) 2. Mrs.....
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....riculturist and wanted to use the said land as residential purposes. Therefore, he took permission and converted the land for nonagricultural purposes. Hence, the revision proceeding on such issue is not sustainable in the eyes of law. Therefore, order passed by assessing officer is neither erroneous nor prejudicial to the interest of Revenue, hence ld AR prays the Bench that order passed by ld. PCIT under section 263 of the Act may be quashed. 10. On the other hand, Ld. CIT-DR for the Revenue heavily relied on the findings of Ld. PCIT and stated that it is a mater of under valuation of sale consideration. The sale consideration i.e. value per Stamp valuation authority was at Rs.60,70,500/- (per jantriy rate). However, it was sold at Rs.22,00,000/-, therefore there is under valuation to the extent of Rs.38,70,500/-. He stated that Ld.PCIT has rightly invoked the jurisdiction u/s 263 of the Act, therefore, order passed by Ld. PCIT should be upheld. 11. We have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings o....
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....he Assessing Officer is unsustainable in law". 12. Taking note of the aforesaid dictum of law laid down by the Hon'ble Apex Court, let us examine, whether order passed by the assessing officer is erroneous. The assessee submits before the Bench, the reason of re-opening the assessment which is placed at paper book pages 7 to 8. The re-assessment proceedings initiated by the AO was dropped by him after getting the satisfaction on the basis of documents submitted by the assessee (vide pb 9 to 10). During re-assessment proceedings, the assessee filed reply on dated 14.11.2014 which is placed at paper book page-9 to 10, wherein the assessee has replied the query asked by assessing officer, about sale of agricultural land. The assessee also narrated the fact before the assessing officer that necessary permission had been taken to convert the land into non-agricultural status, (vide assessee`s reply dated 16.01.2016, which is placed at paper book page-12). The assessee submitted the copy of Gujarat Tenancy & Agricultural Land Act, 1948, which is placed at paper book pages-13- 15. The assessee submitted order of Jilla Panchayat Office Revenue Department, Surat dated 17.07.2012, which is....