TaxTMI 
TaxTMI 
2023 (10) TMI 1035
X X X X Extracts X X X X
X X X X Extracts X X X X
....ate the evidence filed and the correct position of law. iii). The appellant reserves the right to add, amend or alter any of the ground/s of appeal. 3. The brief facts of the case culled out from records are that the assessee, who is an individual has filed his return of income for the AY 2017-18 on 28/02/2018 declaring the total income of Rs. 99,93,230/-. Subsequently, case of the assessee was selected for limited scrutiny through Computer Aided Scrutiny Selection (CASS). Statutory notices were issued and compliances in the form of online return submissions have been made by the assessee. A short order was passed by the Ld. AO stating that considering the submission of the assessee and income declared in the return of income filed, the return income of the assessee is found acceptable. Ld. AO's order u/s 143(3) in the assessee's case for the year under consideration was in due course of time has been examined by Ld. PCIT, thereby on the basis of certain discrepancies revealed in the order of Ld. AO, which was considered as erroneous so far as prejudicial to the interest of revenue, Ld. PCIT invoked the powers conferred upon him by virtue of section 263 of the Act. Notice u/s 26....
X X X X Extracts X X X X
X X X X Extracts X X X X
....AY 2017-18), were termed as sham transactions and the assessee has brought back his unaccounted income through unsecured loan. It is further observed that the amount of some of the unsecured loan creditors which was outstanding for more than 3 years, thus, the claim of assessee's has been barred by operation of Limitation Act, accordingly, an amount of Rs. 2,84,28,914/- proposed to be disallowed and added to the income of assessee u/s 41(1) as cessation of Liability. Another addition of Rs. 60.00/- Lakh u/s 68 of the I.T. Act, on account of failure on the part of the assessee to produce the bank statement reflecting such transactions with M/s Arihant Complex Pvt. Ltd. These issues, in the opinion of Ld. PCIT, were not properly verified with proper enquiries and examination of accounts by the Ld. AO while passing the Assessment Order. On perusal of the order of Ld. PCIT u/s 263, it is found that the assessee has submitted replies on 22/11/2021 & 27/12/2021, on the various aspects on which the revisionary proceedings u/s 263 were initiated by the Ld. PCIT. 5. Ld. PCIT at para 9 of the order u/s 263 has accepted the response of the assessee pertaining to the issue of secured loan rec....
X X X X Extracts X X X X
X X X X Extracts X X X X
....18 of questioner was pertaining to the issue raised by the Ld. PCIT for invoking the provisions of revisionary proceedings u/s 263. The specific question asked under question no. 18 was "details of compensation received on compulsory acquisition of immovable properties during the year along with computation of capital gain/ loss." Ld. AR also has shown us the reply submitted towards the said question by the Ld. AO the same was furnished at page 94 of assessee's PB having reply dated 14/11/2019 and the assessee's response to query no. 18 was as under: "6. Query No. 18 (Compulsory Acquisition) Some of land jointly belonging to me and my brothers, located at Shankar Nagar Raipur, was compulsorily acquired during the year under consideration for aggregate consideration of Rs. 2,15,53,147/-. My share in such compensation was Rs. 71,75,902/-which after deduction of TDS of Rs. 7,17,590/-, got credited to my bank account. I am enclosing herewith following documents in this regard: - a) Agreement and compensation memo issued by competent authority for compulsory acquisition of above land (page no. 13 & 14) b) Extracts of bank statement showing receipt of the compensation (pag....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on the assessee to establish that the compensation on acquisition of land under the RFCTLARR Act, 2013, does not fall under the enactments listed in Fourth schedule to RFCTLARR Act, 2013, which is impossible to be substantiated in absence of existence of any such information. It was the further contention of the Ld. AR that under such facts and circumstances there was no evidence on the basis of which it can be interpreted that the acquisition was made under any of the enactment mentioned in the Fourth Schedule of RFCTLARR Act, 2013. With regard to reliance of the Ld. PCIT on Office Memorandum (OM) dated 06/06/2019, it was the submission that the said office memorandum is applicable only in the cases where acquisition was made under Fourth Schedule enactments, however, in the present case assessee has explained each and every aspect to establish that the acquisition was not covered by any such enactment. It is also submitted that the OM referred to deals with acquisitions other than the acquisitions under RFCTLARR Act, 2013 and in context of Section 105(1) and (3) of the RFCTLARR Act, 2013 which deals with Fourth schedule enactments, whereas the acquisition in the case of assessee....
X X X X Extracts X X X X
X X X X Extracts X X X X
....h the query was raised and responded by the assessee, but no further enquiries with respect to satisfaction of applicable provisions of law to allow the impugned exemption of Income tax were carried out, the exemption claimed by assessee has been abruptly allowed without any speaking observations in the assessment order, which shows that there was no application of mind by the AO, therefore, the order of Ld. PCIT is well justified and sustainable. 17. We have considered the rival contentions, perused the material available on record and case laws referred to. In the present case, the contentions of Ld. AR pertaining to allowability of exemption from Income Tax on the receipt of compensation under RFCTARR Act, which were not found acceptable by the Ld. PCIT saying that the acquisition of land was to build a railway bridge on railway crossing of Shankar Nagar, Raipur, thus, the onus is on the assessee to state with supporting documents that acquisition of land has not taken by any of the Acts mentioned in Fourth Schedule of RFCTLARR Act. It was the observation of Ld. PCIT that the Ld. AO was unable to make necessary enquiries which were mandatory under the provisions of RFCTLARR Act....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... dated 18/03/2016, award u/s 23 of RFCTLARR Act, dated 12/02/2016 and other supporting documents like Ekrar-nama, Bhugtan-patrak etc issued by Bhu-arjan-adhikari and Anuvibhagiya Adhikari, Raipur, C.G. All such information was duly furnished by the assessee and were available before the Ld. PCIT. The Ld. PCIT apart from putting the liability on the shoulder of the assessee to substantiate it otherwise, was unable to surface any cogent information/evidence to prove that the acquisition of land of the assessee is connected and acquired under any of the enactments prescribed under Fourth Schedule of the RFCTLARR Act, accordingly, the contentions raised by the Ld. AR, are found to be justifiable, having material substance, which constitutes that the acquisition of land in the case of assessee was under RFCTLARR Act, and is not covered by any of the enactments as prescribed under Fourth Schedule of the RFCTLARR Act, which is further substantiated by the department itself, when the same issue in the case of co-owner of the land Mr. Mahendra Lodha, who has received 1/3 share of the impugned compensation a/w the assessee, which is disputed in the present case, wherein the exemption from in....