Assessee sold agricultural land and offered profit for taxation as long-term capital gain. Assessing Officer accepted income as offered by assessee and completed assessment. Subsequently assessee having noticed that proceeds from sale of agricultural land will not attract tax filed appeal before Commissioner (Appeals).Commissioner (Appeals) dismissed appeal in limine without admitting same. On appeal the Tribunal held that even though inadvertently assessee offered long-term capital gain on sale of land, he ought to have been allowed to urge claim before Commissioner (Appeals) because since article 265 of Constitution of India prohibits tax to be collected without authority of law. Matter is remanded to Assessing Officer for examination afresh. (AY. 2010-11)
Madanlal Mohanlal Sakhala v. ACIT (2023) 202 ITD 751 (Mum) (Trib.)
S. 54B : Capital gains-Land used for agricultural purposes-Mistakenly offered as taxable income-Assessing Officer accepted the return-Appeal filed before the CIT(A) on the ground that the income was shown mistaken belief that the same is taxable-CIT(A) dismissed the appeal-Held that dismissal of appeal is not justified-Article 265 of Constitution of India prohibits tax to be collected without authority of law.[S. 2(14)(iii), 139(1), 246A, 250, Art. 265]