TMI Blog1987 (5) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... h a matter cannot be an issue which could be corrected or rectified or dealt with under section 154. 2. The CIT (Appeals) had erred in not adjudicating on ground No. 2 relating to change of interest of Rs. 13,350 under section 217 and Rs. 1,790 under sections 217 and 139 (8) in an order under sections 154, apart from the fact that no interest can be charged in section 154 proceedings" 2. By status the assessee is an individual and his accounting period was the year ending 30th Step. 1973. Assessee s some agricultural land was acquired during the relevant accounting period. The assessee returned the capital gain at Rs. 14,000 and after claiming deduction under s. 80T of the IT Act, 1961. the taxable capital gain was worked out at Rs. 5,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alled rectification. It was contended that neither interest nor compensation for acquisition of agricultural land could be brought to assessment under the Act because the agriculture was purely a State subject. 4. The ld. ITO considered that the assessee s submission regarding the matter being of a debatable nature and involving discussion, had no merits s. 155(7A) was clear on the point and the enhanced compensation received at a later stage was to be taxed by substitution the earlier figure by new one. In view of this specific provision the assessee s argument was found devoid of merit. Assessee s further contention that agriculture was a State subject was also found without merit as under ss. 45 to 48 and 154E the capital gain was taxa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear that the capital gains on the basis of acquisition of agricultural lands and the compensation received by him had been assessed in the original assessment order passed on19th March, 1979. That order apparently had been accepted by the appellant. The present rectification is only to correct the computation of capital gains after the compensation of capital gains after the compensation was enhanced by the Addl. Distt. Judge and covered by the provisions of sec. 155(7A) r/w sec. 154. This is not a case where any fresh application of mind relating to the taxability of capital gains arises. This is a pure and simple question of correcting the amount which was found taxable at the time of the assessment order passed on19th March, 1979." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowed by the Revenue authorities. The issue of compensation was determined by the ld. ITO at that stage in the light of those submissions of the assessee, the ld. ITO had also observed that the capital gain as declared was being taxed subject to rectification under ss. 154/155 of the Act. 9. While framing the assessment for the asst. yr. 1980-81 the ld. ITO noticed that the assessee had received compensation of Rs. 1,03,086 relatable to asst yr. 1974-75. The rectification proceedings were attempted against that background. It is seen from the perusal of the order under s. 154 that what was corrected was arithmetical and apparent calculation and not the issue pertaining to taxation of capital gains. It is also seen that the ld. ITO right ..... X X X X Extracts X X X X X X X X Extracts X X X X
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