9911796707
TMI Blog2009 (2) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... see 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. Though the transfer took place in the previous year relevant for the said assessment year. By Finance Act, 1991, an amendment was introduced to section 5(5) (a) providing for levy of income-tax on capital gains arising out of compulsory acquisition of land on receipt of initial compensation. Since the assessee received initial compensation only on January 17, 1989, and under lie amended provisions which came into force retrospectively with effe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is any bona fides in this claim because land was not agricultural and even if it is agricultural land it was situated within the municipality and so much so there is no justification for claiming exemption on this ground. Further, this ground was found against the assessee by all the authorities and the assessee is not in appeal before us. Therefore, the only question to be considered is whether the assessment completed under section 147 for the assessment year 1989-90 is valid or not. Even though transfer took place on October 24, 1987, by virtue of the retrospective amendment to section 45(5) (a) of the Act the capital gains on account of compulsory acquisition of land should be assessed in the year which the original compensation is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e escaping assessment under section 147 which is not time barred or otherwise invalid. The next question to be considered is whether while making assessment under section 147 the Assessing Officer is bound to follow the amended provisions of the law or the law prevailing as on the dare the transfer of property took place. The amendment has taken effect with retrospective effect. Since the amendment introduced by Finance Act, 1991, with retrospective effect from April 1, 1988, was in force as on the date of initiating proceedings under section 147 the Assessing Officer is bound to follow the law in force as on the date of initiation of proceedings. We, therefore, allow the Department's appeal by reversing the order of the Tribunal and the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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