1984 (3) TMI 98

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....ed by the Land Acquisition Officer (LAO). The matter went up further and additional compensation was awarded on 28-11-1978. The actual figures have not been furnished. The Government's appeal was dismissed by the High Court on 4-1-1980 and we understand that the special leave petition was also rejected by the Supreme Court. The compensation was paid to the assessee on 21-4-1983 and the amount was invested in Rural Development Bonds. The ITO completed the assessment by valuing the land at Rs. 25,000 per acre on the date of acquisition and the cost at Rs. 2,000 per acre as on 1-1-1954. He determined the capital gains, by applying section 52(2) of the Income-tax Act, 1961 ('the Act') at Rs. 9,94,160. 2. Before the Commissioner (Appeals) the....

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....lowed expenses of Rs. 15,000. The Commissioner (Appeals), however, had rejected the assessee's claim under section 54E(3). In the order, which is under appeal, the Commissioner (Appeals) had again directed allowance of expenditure under section 48(i). We do not see any reason to differ from the Commissioner (Appeals) in this behalf. 4. The second ground urged by the revenue is that the assessee is not entitled to relief under section 54E(3). It also relies on the decision of the Supreme Court in the case of Addl. CIT v. Gurjargravures (P.) Ltd. [1978] 111 ITR 1 to the effect that the claim for relief under section 54E(3) which was not made before the ITO, should not have been admitted by the Commissioner (Appeals) particularly when he ha....

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....ation for such acquisition or the consideration for such transfer is enhanced or further enhanced by any Court, Tribunal or other authority, the computation or, as the case may be, computations made earlier shall be deemed to have been wrongly made and the Income-tax Officer shall, notwithstanding anything contained in this Act, recompute in accordance with section 48 the capital gain arising from such transfer by taking the compensation or the consideration as enhanced or further enhanced, as the case may be, to be the full value of the consideration received or accruing as a result of such transfer and shall make the necessary amendment ; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years sp....