2010 (3) TMI 1270 - AT - Income Tax

Summary

Issues involved: Appeal against CIT(A) order deleting addition of Rs.3 crores u/s 144 for assessment year 2005-06.

Analysis of Judgment:

1. Impugned Assessment Order (u/s 144): The Assessing Officer assessed the income of the assessee at Rs.3 crores based on information received from CIT(CIB) Delhi. No one attended the hearing, leading to the treatment of the amount as income.

2. CIT(A) Findings: The assessee was one of 33 co-owners of agricultural land sold for Rs.6 crores, entitling the assessee to Rs.16,66,667. The CIT(A) directed verification of land usage for agricultural purposes and cost of acquisition for deduction u/s 54B.

3. Claim for Deduction u/s 54B: The assessee claimed deduction u/s 54B as the sale proceeds were reinvested in agricultural land. CIT(A) directed submission of evidence on land usage and cost of acquisition for determining capital gains.

4. Power of CIT(A) - Section 251(1)(a): The CIT(A) referred the issue back to the Assessing Officer for verification, which was challenged by the revenue. The CIT(A) did not confirm, reduce, enhance, or annul the assessment but restored the issue for determination.

5. Decision: The Tribunal found that the CIT(A) exceeded his powers by remitting the matter back to the Assessing Officer. The CIT(A) was directed to obtain a report from the Assessing Officer and decide the appeal based on verified facts and legal provisions.

6. Outcome: The appeal by the revenue was treated as allowed for statistical purposes, and the matter was restored to the CIT(A) for proper determination.

This summary provides a detailed analysis of the judgment, highlighting the issues, findings, arguments, and the final decision made by the Tribunal.