TaxTMI 
TaxTMI 
2026 (8) TMI 1776
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....ned unexplained. Accordingly, show cause notice was issued to the assessee as per the provisions of section 148A(b) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). On 02.03.2023, the assessee was asked why the cost of purchase of immovable property should not be treated as income chargeable to tax which was escaped assessment u/s. 147 of the Act for the year under consideration. In response, assessee replied vide letter dated 10.03.2023 stating that the amount received was compulsory compensation which was exempt and property was purchased from the amount received. The AO observed that the assessee did not furnish documentary evidences in support of the above explanation. Accordingly, it was concluded that income had escaped with respect of above transaction. Accordingly, order u/s. 148A(d) of the Act was passed on 29.03.2023 after obtaining approval from the Specified Authority and the order was served on the assessee on 29.03.2023. Several notices were issued as detailed at page 2 of the assessment order. The AO prepared a chart indicating two transactions of purchase of property by the assessee from the seller Anis Ahamed (others) and from Mrs. Rajesh Devi. I....
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....ction 56(2)(vii)(b) of the Act being not capital asset and also because of the fact that the assessee was holding it as stock in trade. Hence, it is outside the purview of said section and no addition has to be made in the hands of assessee" Also, the assessee stated that the above definition of property' was amended vide Finance Act, 2010 and for the words 'property, the words, 'property means the following capital asset of the assessee, namely:- were replaced with retrospective effect from 01.10.2009. Thus, after amendment vide Finance Act, 2010, the definition of property u/s. 56(2)(vii) of the Act reads as under: "(d) "property" means the following capital asset of the assessee, namely:- (i) immovable property being land or building or both..." Thus, in view of the above amendment in the definition of 'property', wherein the word 'capital asset' has been specifically introduced w.r.e.f. so as to keep any asset which is not a capital asset out of the ambit of Section 56(2)(vii)(b)" Reply on 05.02.2024: Also, the assessee has again replied on 05.02.2024 stating that reliance is further placed on the....
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....in detail and passed a reasoned and speaking order after due application of mind. In the absence of any corroborative material or cogent rebuttal brought on record by the appellant, I find no infirmity in the approach adopted by the Assessing Officer. Accordingly, in view of the reasoning recorded by the Ld. AO and in the absence of any contrary material or substantiated submission from the appellant, the findings of the Assessing Officer deserve to be sustained. 9.4 In view of the above, addition of Rs. 61,02,500/- Income from other sources u/s. 56(2)(vii)(b) during the year under consideration, regarding which the assessee failed to provide any cogent evidences during the appellate proceedings. Considering the above the addition made by the assessing officer is upheld." 5. Aggrieved, with the above order assessee is in appeal before us raising following grounds of appeal:- "1. That the impugned Assessment order passed by the Hon'ble CIT (A) is bad in law, wrong on facts and against the Principal of natural justices hence is unsustainable. 2. That The Ld. AO NFAC has erred in law and on facts no submission was made details but ignored without any ....
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....and relying on the decision of Hon'ble Supreme Court (supra), we proceeded to admit the additional ground of appeal for adjudication. 8. At the time of hearing, the ld. AR of the assessee submitted as under:- 2. Additional ground raised by the Assessee is against framing of order u/s 148A(d) and then issuance of notice u/s 148 both dated 29-03-2023 without taking mandatory approval u/s 151. In other words, the Approval u/s 151 is not signed by the competent authority either digitally or manually. Copy of the unsigned approval is available at page no. 2 to 4 of the paper book. It is well settled that any document which is not signed by the competent authority is only a piece of paper only. Ground 1 to 7: 3. Solitary issue involve in all the grounds of appeal is addition on account of difference between the purchase price of agricultural land and circle rate. 4. Neither the Assessing Officer nor the CIT(A) disputed that the impugned land so purchased was not an agricultural land and situated at the distance beyond the prescribed limit from the municipality. Hence, outside the definition of 'capital asset, therefore the deeming provision of s....
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....ed the ld. CIT(A) has heavily relied on the findings in the assessment order and he relied on the same. 10. Considered the rival submissions and material placed on record, we have observed that the order passed by the ld. CIT(A) is ex-parte and non-prosecution. Since, the issue involved is covered and also the assessee is the farmer and the facts in the case of the assessee is already covered by the decision of Coordinate Bench. We proceeded to adjudicate the same here itself. We observed that the assessee has purchased two agricultural land worth Rs. 30,00,000/-. However, the Stamp Duty valuation was much higher than the purchased price, assessee has filed relevant detailed supporting documents for the payment of Rs. 30,00,000/- each for the both properties and further assessee also filed the relevant information about the source of purchase of the above said properties. The only issue before us is whether the assessee had purchased the agricultural land or not from the findings of the lower authorities. We observed that both the lower authorities have never raised any doubt on the issue of nature of land purchased by the assessee. Therefore, it is fact on record that the land ....