“Section 2(284)”
The decision most relied on for Section 2(284) is CIT v. Varas International (284 ITR 80), cited in 79 judgments on BharatTax.
Leading authorities on Section 2(284)
An appellate authority can admit additional legal grounds for the first time, even if not raised earlier, provided these grounds are purely legal, go to the root of the matter, and the relevant facts for their adjudication are already on record.
The determination of whether land is agricultural or not depends on its status at the time of transfer, and subsequent usage or location in a commercial area is irrelevant. The purpose for which a purchaser buys the land also does not affect its classification as a capital asset at the time of sale.
For a revisionary order under Section 263 to be valid, the Assessing Officer's original order must be demonstrably erroneous and prejudicial to the revenue. The Commissioner cannot substitute their own view if the Assessing Officer's view was taken with proper application of mind and on record.
