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2009 (2) TMI 390 - HC - Income TaxReassessment- Capital gains- An item of property belonging to the assessee was notified for acquisition on June 31, 1986. Possession was taken over on October 24, 1987, and the initial compensation was paid to the assessee on January 17, 1989. Even though the assessee filed income-tax return for the year 1988-89 the assessee did not include any income from capital gain. The Assessing Officer issued notice under section 147 and completed the assessment for the assessment year 1989-90. The assessee filed appeal against the assessment which was allowed by the commissioner of Income-tax (Appeals) holding that the amendment of the statute will not justify reopening of assessment under section 147. This order is confirmed by the Tribunal. Held that-(i) that the property transferred was not agricultural land thus claiming exemption on the ground that the property taken over was agricultural land and hence there was no liability for tax on capital gains.(ii) That section 147 was not controlled by the amendment that was applicable in the case. Since the assessee did not concede the income on capital gain either under the unamended provision or under the amended provision the recourse open to the Department was to bring to tax income escaping assessment u/s 147 which was not time barred to follow the law in force as on the date of initiation of proceeding.
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