TMI Blog1996 (6) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income-tax Act ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that no capital gains would arise on the sale of urban agricultural land ? " Question No. 2 relating to receipts as a result of the sale of urban agricultural land, whether can be treated as capital gains or not, gets covered in more than one way. The decision of this court in CIT v. T. K. Sarala Devi [1987] 167 ITR 136 considers the basic question as regards the source of the amount. If the source of the amount is the realisation of the capital assets--agricultural land--it cannot be considered as anything other than capital gains and would not be income derived from agricultural land and, therefore, not chargeable un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsaction of sale of the land admeasuring 1 acre and 15.325 cents sold at Rs. 42,250 was shown in the return, with an explanatory note below thereunder that no capital gains arose in view of the judgment of the Bombay High Court in Manubhai A. Sheth v. N. D. Nirgudkar, Second ITO [1981] 128 ITR 87. The assessment under section 143(1) of the Act came to be completed, as stated above. Thereafter, the Income-tax Officer exercised the powers under section 143(2)(b) of the Income-tax Act, 1961. Naturally a notice thereunder was issued and by the order dated February 22, 1984, Rs. 11,859 came to be demanded as an additional amount on the basis of incorrectness in regard to the assessment completed under section 143(1) of the Act. In reaching thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere was no scope for a fresh look. The first appellate authority took the view that the summary assessment was converted into a scrutiny assessment by resorting to the provisions of section 143(2)(b) of the Act. It was also observed that section 143(2)(b) of the Act is not synonymous with the contents of section 147(a) or section 147(b) of the Act. The Income-tax Appellate Tribunal took up the question for consideration in the impugned order dated June 12, 1986 (annexure "D"). The question was taken up for consideration by the Tribunal in paragraph 3 of its order. The submissions with regard to the language of section 143(2)(b) were made to contend that certain inherent conditions for justification of the action under section 143(2)(b) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laid down by this court, which we respectfully follow, as different from the Bombay High Court relied upon by the assessee and the taxation authorities below. The law of this State is abundantly clear as stated above. A bare look at the concerned statutory provision would show requirements necessary to exercise the powers under section 143(2)(b) of the Act as was initiated by the authorities. Section 143(1) of the Act speaks of initiation of summary procedure which does not require the presence of the assessee or the production of any evidence in support of the return and requires the Assessing Officer to act in a summary manner on the basis of the return and its accompaniments. The provision also empowers the Income-tax Officer proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t speak of the requirement of any independent information in regard thereto and subsequent thereto in the context of point of time. The submissions which were made before the Tribunal, and apparently have sweared before the Tribunal, will have to be considered as stemming from the requirements of section 147 and section 148 of the Act dealing with the situation of escapement of assessment and the law in regard thereto. It is not possible to introduce the requirements of section 147 and section 148 of the Act and consequently violate the plain statutory provision of section 143(2)(b) of the Act, for expecting the necessity of some other additional information having a source at a later occasion in the context of point of time. The language o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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