1982 (10) TMI 72

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....er the following question, said to be a question of law arising out of the Tribunal's order in ITA No.43/Chandi/80 dt. 15th June, 1982 to the Hon'ble High Court of Punjab & Haryana at Chandigarh for their esteemed opinion: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in cancelling the order under s. 263 passed by the CIT. " Inasmuch as, in our op....

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....ulation in the said lease deed Rs. 8,000 was to be received on the expiry of the said period. In respect of the said lease deed, the assessee incurred an expenditure of Rs. 1,014.50 on registration expenses and deducting the said sum from Rs. 80,000 the assessee had shown the balance of Rs. 79,985.50 as agricultural income. The assessee produced the said lease deed before the ITO in the course of ....

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....e documents." Subsequently, the CIT issued a notice under s. 263 of the IT Act that the land in question was not in fact being used for any agricultural purposes by the assessee before and at the time when it was leased out, the land was not leased out for agricultural purposes alone. Since in the present case the lease deed permitted the use of land for the purposes other than agriculture, the....

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....is prejudicial to the interest of the Revenue. 3. When this action of the CIT was contested before the Tribunal, the Tribunal in paras 8 and 9 of its order allowed the assessee's appeal. The Tribunal in para 8 of its order on page 13 observed as under: "... In the instant case, the land leased out was agricultural land as per the Revenue's record and was being used by the assessee as such be....