TaxTMI 
TaxTMI 
2023 (9) TMI 672
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....Ground of appeal 1. The learned Principal Commissioner of Income-tax-3, Rajkot erred in assuming jurisdiction u/s 263 of the Act, particularly in the light of reasons stated by him in the show cause notice and in the order passed u/s 263 of the Act and hence the impugned order is bad in law. 2. The learned Principal Commissioner of Income-tax-3, Rajkot erred in setting aside the assessment order framed u/s 143(3) of the Act by holding that assessment order passed by the assessing officer was erroneous and prejudicial to the interest of revenue. 3. The learned Principal Commissioner of Income-tax-3, Rajkot failed to appreciate that necessary inquiries were made by the assessing officer during assessment proceedings u/....
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....sessment proceedings, the assessee only produced copy of 7/12, which could not show actual use of land for agricultural purposes. As per section 54B, the assessee must establish that the land should be used for agricultural purposes for a period of 2 years prior to the date of transfer. However, the assessee has not produced any documentary evidence to substantiate the claim under section 54B that the land was used for agricultural purposes. Further, the Principal CIT observed that the assessee had purchased the land on 16-09-2010 and thereafter, the land use was converted into non-agricultural use on 02-01-2014 and the land was sold to a non-agriculturalist by way of sale deed dated 07-04-2014 as a non- agricultural land. Accordingly at th....
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....ings, and the Principal CIT is not permitted to supplant its own opinion with regards to taxability or claim of deduction u/s 54B, by taking recourse to proceedings under section 263 of the Act. 6. In response, the Ld. DR pointed out that the assessee had submitted reply to the queries raised by the assessing officer only at the fag end of the close of assessment proceedings i.e. on 15-11-2017 and again on 05-12-2017 and the assessment order was passed on 27-12-2017. Accordingly, it was submitted by the Ld. DR that the assessing officer did not get adequate time or opportunity to make detailed enquiries during the course of assessment proceedings, since the assessee has filed the details only at the fag end of the assessment proceedings. T....