The Delhi High Court directed to seek statutory remedy on the allegation that the sale consideration of agricultural land was assessed to tax without adjusting the cost of acquisition.
Om Parkash, the petitioner filed the second round of litigation. An assessment order dated 29.03.2023 has been passed. Mr Sultan Singh Khatri, who appeared on behalf of the petitioner submitted that there were several flaws in the impugned assessment order, which has been passed under Section 143(3) read with Section 147 of the Income Tax Act, 1961.
It was alleged that no notice under Section 143(2) of the Income Tax Act was issued prior to passing the assessment order. Further held that the entire sale consideration on account of the sale of agricultural land has been assessed to tax. There has been no adjustment for the cost of acquisition and the benefit of Section 54B of the Act has not been granted.
The respondent argued that the petitioner did not furnish relevant details to the AO, to establish that the subject land was rural agricultural land.
It was observed that the cost of acquisition has been taken as “nil” isan aspect which may require intercession by the AO, while ascertaining whether stay qua demand should be granted.
A two-judge bench comprising Justice Rajiv Shakdher and Justice Girish Kathpalia disposed of the petition by directing the petitioner to prefer an appeal with the Commissioner of Income Tax (Appeals) (CIT(A)).
Further held that “the petitioner will file an application for stay with the concerned authority, within ten [10] days from today. The concerned officer will dispose of the application for stay within ten [10] days of the same being filed. The AO will inter alia, bear in mind, the broad contentions raised before us, and, the aspect that the entire sale consideration has been brought to tax.”
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