2010 (2) TMI 75 - DELHI HIGH COURT

Revision u/s 263 – one Sh. Ashok Kumar Sharma had received compensation for the land at village Tughlakabad and Sh. Ashok Kumar Sharma had transferred 50% of such compensation to the assessee at a sum of Rs 27,00,000/- only, whereas the compensation granted by the Supreme Court in relation to the said land was Rs 1.82 crore - . It was further noticed by the CIT that the TDS deducted on the compensation had also been transferred by the said Ashok Kumar Sharma in the name of the assessee. The CIT came to a conclusion that credit of TDS can be transferred mainly to a person who is acting as agent or representative of the entitled person, and that such issues had not been examined by the Assessing Officer. The CIT, therefore, came to a conclusion that the order of the Assessing Officer was erroneous and prejudicial to the interest of the Revenue and deserved to be set aside. The assessment framed was, therefore, reopened under Section 263 of the said Act. - Before the Tribunal it was the case of the assessee that the compensation received by him on purchase of the award was offered for tax under the head “capital gains”. – ITAT quashed the order passed u/s 263 by the CIT – held that - , it is apparent that the Tribunal arrived at a conclusive finding that, though the assessment order does not patently indicate that the issue in question had been considered by the Assessing Officer, the record showed that the Assessing Officer had applied his mind. Once such application of mind is discernable from the record, the proceedings under Section 263 would fell into the area of the Commissioner having a different opinion. – order of ITAT sustained