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2017 (4) TMI 1149 - AT - Income TaxReopening of assessment - territorial jurisdiction of officers over the assessee - Held that:- It is not clear from the records whether the Income Tax Officer was aware of the quantum of income returned by the assessee as the return of income was filed with the DCIT. The copy of the reasons recorded for reopening of the assessment is not filed before us and therefore, we are not able to come to any conclusion as to whether the AO has reopened the assessment on the basis of any information received by him or it is on the basis of the return of income filed by the assessee. If the return of income was not before the AO, it cannot be presumed that he was aware of the jurisdiction of the DCIT over the assessee and inspite of that have initiated proceedings u/s 148 of the Act. It is also not in dispute that as soon as the Income Tax Officer realized that he lacked pecuniary jurisdiction over the assessee, the case was immediately transferred to the file of the DCIT who again issued a notice u/s 143 (2) of the Act. Since one of the Officers who has concurrent jurisdiction over the assessee have issued notice u/s 148 of the Act, we are satisfied that the proceedings u/s 147 have been validly initiated. The assessee’s additional ground of appeal is thus rejected. Disallowance of eviction charges in respect of three persons in computing the capital gains - Held that:- The undisputed facts are that the assessee’s husband along with his brothers has sold the land to M/s. Metro Cash & Carry India Pvt. Ltd, Bangalore and has gained LTCG therefrom. As regards the expenditure claimed by the assessee for getting the illegal occupants evicted from the land, the AO has accepted the payment to one of the occupants of the land, since he was produced before him. Therefore, it is clear that the land was not in peaceful possession of the assessee’s husband and AO has accepted this fact. The assessee has claimed that she has claimed to have paid to 5 persons out of which, payment to one person has been allowed. The disallowance of payment to others is on the ground that the assessee has not been able to produce those parties for cross verification. No doubt, the onus is on the assessee to produce the parties. We find that the assessee has filed the affidavits of two persons but the AO has not accepted the same but also has not held that the payment is genuine. Therefore, to the extent of payment which is supported by affidavits, we direct the AO to allow the same. Similarly it is also not uncommon that village elders intervene and settle the land disputes to safeguard the law and order and protect the peaceful atmosphere of the village. The assessee has claimed to have paid for the village development. Therefore, we direct that 50% of the claim i.e. up to ₹ 1.50 lakhs be allowed. The assessee gets relief accordingly. Assessee’s appeal is partly allowed.
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