SMT HAFIZ SHAIKH,DEWAS vs. THE ITO WARD-1, DEWAS

ITA 56/IND/2023Status: DisposedITAT Indore29 May 2023AY 2017-18Bench: SHRI VIJAY PAL RAO (Judicial Member), SHRI B.M. BIYANI (Accountant Member)6 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) denied the exemption on grounds different from the AO without issuing a show-cause notice or providing an opportunity to the assessee. This violated the principles of natural justice.

What were the facts?

The assessee claimed exemption under Section 54B for capital gains arising from the transfer of land to a partnership firm. The Assessing Officer denied the exemption based on Section 45(3), while the CIT(A) confirmed the disallowance stating the land was not agricultural.

What were the issues?

Whether the denial of exemption under Section 54B by the CIT(A) on grounds not raised by the AO, without providing an opportunity to the assessee, is valid.

Which sections of the Income-tax Act were involved?

Section 54B,Section 45(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

For Appellant: Ms. Richa Parwal, AR
For Respondent: Shri Ashish Porwal, Sr. DR
Hearing: 25.05.2023Pronounced: 29.05.2023

Per Vijay Pal Rao, JM:

This appeal by the assessee is directed against the order dated 26.12.2022 of Ld. Commissioner of Income Tax (Appeals) (in short Ld. CIT(A), National Faceless Appeal Centre, Delhi for Assessment Year 2017-

18.

The assessee has raised following grounds of appeal:

1.

That the Hon. CTT (A) has grossly erred in law, in confirming an addition of Rs.15475988/- by disallowing exemption u's 54B of the Act claimed from the Long term Capital Gain arising from deeming provision u/s 45(3) of the Act:

1.1.

By holding that the land in reference has not been shown as used for agricultural purpose and that nothing has been brought on record to show that the land was being cultivated prior to its sale, being completely on a wr

The order continues below.

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