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2021 (5) TMI 155 - ITAT HYDERABADValidity of reopening of assessment - long term capital gain’s addition made in its hands by invoking Section 50C - assessee alleged fact that the land sold herein is agricultural only than a capital asset u/s.2(14) - HELD THAT:- We find no merit in assessee’s first and foremost grievance qua legality of the impugned re-opening since the difference between SRO value and actual price very well formed the tangible material for the Assessing Officer to record his reasons to this effect. Section 50C addition - The Revenue’s only argument that the issue of assessee’s land sold not forming a capital asset u/s.2(14) of the Act ought not to be allowed to be raised in Section 148/147 proceedings since the same is meant for the specific purpose to tax the income escaping assessment for the benefit of the department only fails to evolve our concurrence since applicability of Section 2(14) herein qua the assessee’s land sold goes to the very root of the matter. And also it might lead to the impugned capital gains addition without determination of the nature of the corresponding capital asset. The Revenue further fails to dispute that the case law Sunil Kumar Agarwal [2014 (6) TMI 13 - CALCUTTA HIGH COURT] holds that Section 50C(2) reference is mandatory even if there is no such prayer from the assessee’s side before the Assessing Officer. And that there is no indication about the nearest municipality under Article 243T r.w. Article 243P of the Constitution of India. We thus accept the assessee’s identical latter grounds of Section 50C addition and restore the same back to the Assessing Officer for his afresh adjudication after making the necessary reference to the DVO u/s.50C(2) of the Act. Ordered Accordingly.
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