KARNAIL SINGH,PATIALA vs. INCOME TAX OFFICER, WARD NO. 4,, PATIALA

Aforesaid appeal by assessee for Assessment Year (AY) 2020-21 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 27-03-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 144 r.w.s. 144B of the Act on 06-09-2022. The registry has noted delay of 160 days in the appeal, the condonation of which has been sought by Ld. AR.

In the assessment order, Ld. AO brought to tax compensation received by the assessee on compulsory acquisition of assessee’s land by appropriate authority as well as interest received on such compensation. The assessee failed to make any submissions during assessment proceedings. The position remained the same during first appeal which led to confirmation of assessment order against which the assessee is in further appeal before us. The Ld. AR stated that the land in question is a rural agricultural land and therefore, the compensation so received would be exempt from tax. The Ld. AR stated that the assessee is in a position to substantiate its case and accordingly, sought another opportunity of hearing before lower authorities which ash been opposed by Ld. Sr. DR. 3. Accepting the prayer of Ld. AR, we admit the appeal and set aside the impugned order and restore the assessment back to the file of Ld. AO for de novo assessment with a direction to the assessee to plead and prove its case forthwith. 4. The appeal stand allowed for statistical purposes.