TMI Blog1999 (2) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... A sum of Rs. 25,240 was awarded as compensation by the Land Acquisition Officer on November 20, 1965. On a reference at the instance of the appellant, the civil court enhanced the compensation to Rs. 2,72,136 including solatium and interest. The same was affirmed on appeal by the High Court on October 16, 1970. The appellant filed a return under section 139(4) of the Income-tax Act (hereinafter referred to as the "Act"), on February 17, 1972, disclosing the interest on belated payment of compensation as her income. The Income-tax Officer rejected it as invalid as it was filed beyond the period prescribed under section 139(4) of the Act. The Income-tax Officer initiated proceedings under section 147(a) of the Act for the year ending March 31 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t agricultural and in view of the Andhra Pradesh High Court's decision in the case of Officer-in-Charge (Court of Wards) v. CWT [1969] 72 ITR 552 [FB], which was not accepted by the Department ? 3. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justified in holding that the lands are agricultural lands?" By a detailed order, the Tribunal rejected the application with reference to questions Nos. 2 and 3 but referred only the first question by recasting it as follows (see [1991] 190 ITR 342, 343): "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that the reassessment proceedings initiated by the Income-tax Officer in this case were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tire land as on January 1, 1954, would be about Rs. 16,500. Thus, the assessee made a net capital gain of Rs. 1,93,860. Besides the amount of interest that accrued year to year will have to be included as a protective basis. The assessee has filed a return disclosing an income of Rs. 3,599 being interest on belated compensation on February 17, 1972. As this has been filed beyond the period prescribed under section 139(4) the return has been treated as invalid and filed. I have, therefore, reason to believe the income chargeable to tax has escaped for the assessment year 1965-66 and that such escapement was by reason of omission or failure on the part of the assessee to make a valid return under section 139 for the assessment year 1965-66. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sets but its actual condition and intended user had to be seen for purposes of exemption from wealth-tax. By that judgment, this court reversed the judgment of the Andhra Pradesh High Court in Officer-in-Charge (Court of Wards) v. CWT [1969] 72 ITR 552 [FB]. The Full Bench of the High Court had in its judgment held that actual user of the land for agricultural purposes was not necessary for making it an agricultural land and it was sufficient if the land could have been put to agricultural use. The judgment of this court was rendered only on August 6, 1976, long after the reopening of the assessment by the Income-tax Officer in the present case. Thus when he invoked section 147(a) of the Act, the aforesaid judgment of the Full Bench of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs of fact rendered by the Commissioner of Income-tax (Appeals) and the Appellate Tribunal and proceeded to discuss the matter as if it was sitting in appeal over the order of the Tribunal. The High Court has also assumed that the Income-tax Officer had looked into the Revenue records and other connected records on the basis of which he came to the conclusion that the reopening of the assessment was necessary. We are unable to agree with the reasoning of the High Court. Learned counsel for the Revenue has attempted to support the order of the High Court by stating that the interest accrued from year to year on the compensation paid to the assessee would have to be brought to assessment on protective basis and the same was sufficient to re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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