SRI K MALLIKARJUNA,BELLARY vs. COMMISSIONER OF INCOME TAX, GULBARGA

ITA 1109/BANG/2014Status: DisposedITAT Bangalore30 July 2015AY 2009-105 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT did not follow the principles of natural justice by including an issue (Section 54 exemption) not mentioned in the show-cause notice and by not properly verifying the facts related to Section 10(37). The matter was remitted back to the CIT for reconsideration.

What were the facts?

The assessee claimed exemption for compensation received from the transfer of agricultural land under Section 10(37). The CIT initiated proceedings under Section 263, believing the AO erred in allowing the exemption without proper verification. The CIT also considered exemption under Section 54, which was not initially part of the notice.

What were the issues?

Whether the CIT erred in revising the assessment order under Section 263 without proper verification and by introducing new issues, violating principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 263,Section 10(37),Section 54

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH : BANGALORE

Before: SMT. P. MADHAVI DEVI & SHRI JASON P BOAZShri K.Mallikarjuna,

For Appellant: Shri M.V.Seshachala, Advocate

Per Smt. P. MADHAVI DEVI, JM:

This appeal by the assessee is against the order of the CIT, Gulbarga, dated 03/01/2014 u/s 263 of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] for assessment year 2009-10. 2. Brief facts of the case are that the assessee-individual, who is engaged in the business of chemical and fertilizer Shri K.Mallikarjuna dealership, filed his return of income for the relevant assessment year declaring a loss of Rs.77,350/-. The Assessing Officer (AO) accepted the return filed by the assessee in the assessment proceedings u/s 143(3) of the Income-tax Act, 1961 ['the Act']. Thereafter, the Commissioner of Income-tax [‘CIT’],

The order continues below.

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