TMI Blog1981 (9) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... -2-1971 fixed the compensation payable at Rs. 6,587. Since the transfer of the land took place in the previous year relevant to the assessment year 1967-68, capital gains, if any, arising out of that transfer were liable to be returned for this assessment year. The assessee did not file any return for this assessment year. The assessee was not satisfied with the amount of compensation awarded by the Land Acquisition Officer. She went in appeal before the Civil Court and the Civil Court fixed the compensation inclusive of solatium and interest at Rs. 23,683 by its judgment dated 14-12-1971. On receipt of this information, the ITO, C-Ward, Visakhapatnam, initiated proceedings for assessment of capital gain arising out of the enhanced compensa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9(1) inasmuch as she had no taxable income at all for the relevant year. Hence, he held that the issuance of a notice under section 148 was without jurisdiction. On merits, he held that in his view the evidence produced by the assessee was sufficient to establish the agricultural character of the land acquired. Thus on merits also he held that the land acquired being an agricultural land, the levy of capital gains tax was unsustainable. 4. Before me, the learned departmental representative contended that the AAC erred in holding that there was no obligation on the part of the assessee to file a return under section 139(1) and in the absence of such an obligation, the ITO had no reason to believe that income has escaped assessment because ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 139 or to disclose fully and truly all the material particulars necessary for the assessment. In this case, the ITO issued the notice under section 148 beyond 4 years and it would be without jurisdiction unless the escapement of income was shown to have been occasioned by the assessee's omission or failure contemplated by section 147(a). The jurisdiction of the ITO under section 147(a) would be attracted where he had reason to believe that income has escaped assessment by reason of the assessee's omission or failure to make a return under section 139 or to disclose fully and truly the material facts necessary for completion of the assessment. Section 147(a) speaks of the assessee's failure to make a return under section 139. It is now a w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 147(a) by issue of a notice under section 148 was without jurisdiction. 7. Coming to the merits, the learned departmental representative contended that the AAC ought not to have admitted additional evidence. There is no force in this argument. At the assessment stage, the assessee expressed his inability to produce adangal or an extract therefrom and requested the ITO to summon the Tahsildar to produce the adangal. As stated earlier, the ITO rejected the request of the assessee on the ground that the assessment would get time-barred if he were to give another opportunity. The assessee had thus no opportunity to produce this evidence at the assessment stage and, hence, I am of the view that she gave a satisfactory explanation for the n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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