Sh. Umed Singh Vs. PCIT

Parties Involved

Facts Summary

The assessee, Sh. Umed Singh, received enhanced compensation of Rs. 6,86,17,767/- including interest of Rs. 3,97,56,460/- under section 28 of the Land Acquisition Act, 1894, following the compulsory acquisition of his agricultural land by the Haryana Government. The Assessing Officer (AO) completed the assessment on 22.01.2021 without making any addition, accepting the assessee's claim that the interest was part of the enhanced compensation and exempt under section 10(37) of the Income-tax Act, 1961. The Principal Commissioner of Income Tax (PCIT) revised this order, holding it erroneous and prejudicial to the Revenue's interest, directing the AO to pass a fresh order. The assessee appealed this revision, arguing that the AO's order was based on proper enquiry and the PCIT's revision was based solely on an audit objection.…

Legal Issues

• 1. Whether the AO's assessment order was erroneous and prejudicial to the Revenue's interest.
• 2. Whether the PCIT's revision was valid.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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