In a recent ruling, the Delhi Bench of the Income Tax Appellate Tribunal ( ITAT ) remanded the income tax matter as the source of creation of fixed deposits ( FD ) needed verification of land acquisition compensation.
In this case, the assessee, Tejpal Singh Yadav, has appealed against the order of the Commissioner of Income Tax ( Appeals ) [ CIT( A ) ], dated 31-03-2022.
The main issue involved in this case of the assessee is the determination of the treatment required to be given to the amount received by the assessee in the form of interest on compensation/enhanced compensationreceived from Noida Authority for the acquisition of landholding of the assessee.
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The assessment order was passed under Section 147 of the Act, and an ex parte order was passed by the First Appellate Authority.
Regarding the FDRs ( Fixed Deposit Receipts ) created by the assessee, the counsel submitted that it was out of the compensation proceeds only.
The ITAT bench observed that the Commissioner of Income Tax ( Appeals ) [ CIT ( A ) ] had noted the decision in Multiplan India (P) Ltd, and was of the opinion that the appeal of the assessee is liable to be dismissed for want of prosecution. The CIT( A ) upheld the addition on merits.
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The tribunal restored the issue to the assessing officer ( AO ) for a fresh determination as the issue involved in this case requires verification of facts regarding the heads under which the assessee had received the compensation or sources of creation of FD.
The ITAT bench, comprising Mr. Brajesh Kumar Singh ( Accountant Member ) and Mr. Anubhav Sharma ( Judicial Member ), allowed the appeal filed by the assessee for statistical purposes.
The bench set aside the order passed by AO and also held that adequate opportunity of a hearing should be given to the assessee.
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The assessee was represented by SatyajeetGoel, and the revenue was represented by Mr. AmitKatoch.
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