1991 (12) TMI 54 - HC - Income Tax

Summary

Issues:
1. Whether there is material on record for the Commissioner to initiate revision proceedings under section 263 of the Income-tax Act, 1961Rs.
2. Whether the delay in taking possession of the land after the notification under section 17 of the Land Acquisition Act affects the vesting of the property in the GovernmentRs.
3. Whether the date of possession taken by the Land Acquisition Officer is to be considered as the date of vesting of the property for tax assessment purposesRs.
4. Whether the Tribunal was justified in upholding the Commissioner's remand order and decisions regarding the assessment of income and allowance of expenditureRs.

Analysis:
1. The court found that the Commissioner was justified in initiating revision proceedings under section 263 of the Income-tax Act based on the events' chronology. The possession of the land by the Government on October 12, 1973, after the notification under section 17 of the Land Acquisition Act, led to the vesting of the property, justifying the revision of the assessment order by the Commissioner to tax the capital gains in the assessment year 1974-75. The court ruled in favor of the Revenue on this issue.

2. The court rejected the argument that the delay in taking possession after the notification under section 17 of the Land Acquisition Act negated the urgency requirement for vesting the property in the Government. It held that the Collector had the right to take possession after fifteen days from the publication of the notice under section 9(1), and the property vested in the Government on the date of possession. The court disagreed with the interpretation that possession should be related to section 16 of the Land Acquisition Act due to delay, ruling in favor of the Revenue on this issue.

3. The court determined that the date of possession taken by the Land Acquisition Officer, October 12, 1973, was the material date for assessing the income arising from the property acquisitions. It concluded that the relevant assessment year was 1974-75, supporting the Revenue's position on this matter.

4. Regarding the Tribunal's decisions on the Commissioner's remand order and the assessment of income and expenditure, the court noted that a comprehensive remand for factual investigation was necessary. As a result, the court did not answer the questions related to these issues, as the facts required were not before them due to the remand. The court ruled in favor of the Revenue on the answered questions and declined to provide a response to the unanswered questions due to the ongoing remand process.