Sh. Mahendra Singh vs. ITO

Parties Involved

Facts Summary

The assessee, Sh. Mahendra Singh, entered into an 'Agreement to Sell' with Surja Ram, Prabhata Ram, Hanuman, and Laxman to purchase their joint family's respective share in agricultural land situated at various Khasra No(s) at Village Reengus, District Sikar, Rajasthan on 29.11.2012. An advance (Sai Pate) of Rs 11,00,000/- was paid by the assessee to all the co-owners. The balance amount was to be paid on a later date but was never paid by the Assessee. The possession of the above referred agricultural land was never received by the assessee. Moreover, there was an old dispute pending before the Court regarding the ownership and possession of the alleged agricultural land. Later, a stay order had also been passed against the sellers by the competent court. The alleged agreement to sell was later cancelled, and the assessee received back the advance amount of Rs 11 lakhs. The Assessing Officer initiated reassessment proceedings and made a huge addition amounting to Rs 5,90,55,000/- ignoring the fact that the alleged transaction is not a transfer in terms of section 2(47)(v) of the Income Tax Act.…

Legal Issues

• 1. Whether the CIT(A) grossly erred in holding that the appellant assessee did not apply for adjournment?
• 2. Whether the CIT(A) grossly erred in passing appeal order without allowing proper opportunity of being heard to the appellant assessee?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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