2026 (1) TMI 292

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.... record. 2. That on perusal of the grounds of appeal raised by the assessee, it is quite discernable that the assessee is aggrieved by passing order u/s. 263 of the Act by the Pr. CIT and that it is the contention raised by the Ld. Counsel for the assessee at the time of hearing that such order has been passed without arriving at any satisfaction, hence, liable to be quashed. 3. In this regard, let us examine the facts on record. The assessee is a farmer and is engaged in the activity of cultivating paddy and had filed his return of income for A.Y.2021-22 on 31.03.2022 declaring an income of Rs. 1,54,590/-. The assessee has claimed exempt income from sale of agricultural land of Rs. 58,40,596/- u/s. 10 of the Act. Subsequently, the ca....

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....interest u/s. 234A/234B/234C of the Act. 5. Further, it was pointed out in the order of the Pr. CIT that the Government of Chhattisgarh u/s. 405(1) of Chhattisgarh Municipal Corporation Act, 1956 has issued the gazette notification to extent the boundary of Municipal Corporation, Bilaspur. It has included Municipal Counsel, Nagar Panchayat, Gram Panchayat and Gram (village) for extension of the boundary. Accordingly, Chhattisgarh State Government in its Notification No. F1-102/2019/18, dated 31.07.2019 has extended the municipal limits of the Municipal Corporation, Bilaspur and by virtue of this notification also the impugned transferred land falls within the aforesaid limits of Municipal Corporation, Bilaspur. Thus, the said land is evi....

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....t u/s.2(14) of the Act. That since the A.O had failed to make enquiry regarding these facts, there has been under-assessment of income to the tune of Rs. 65,68,200/- causing thereby under levy of tax, surcharge and cess of Rs. 14,80,974/- in addition to the applicable statutory interest. Therefore, such order passed by the A.O is erroneous in so far it was prejudicial to the interest of the revenue. 9. Coming to the argument of the Ld. Counsel for the assessee that the order passed u/s. 263 of the Act was without any reasoning, is not correct and is absolutely baseless for the reason that the Ld. Pr. CIT in his order passed u/s. 263 of the Act had clearly brought out areas in which the A.O had failed to conduct necessary enquiry i.e. the....

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....action conducted by the assessee. That going through the entire assessment order, it is clear that such assessment has been done in a summary manner accepting the return income as well as the reply of the assessee. That on plain reading of Section 263 of the Act a/w. Explanation-2 of the said provision of the Act, since the assessment order has been passed without making inquiries or verification and the order is passed allowing relief without inquiring into the claim and also considering the deeming nature in Explanation-2, the assessment order, therefore, is erroneous in so far it is prejudicial to the interest of the revenue. 11. In the cases of Rampyari Devi Saraogi Vs. Commissioner of Income-Tax, West Bengal, Calcutta, 67 ITR 84 (SC....