- (1.) PRAYER in this petition filed under Articles 226/227 of the Constitution of India is for quashing the orders dated 30.12.2011 and 4.3.2013, Annexures P.5 and P.8 passed by respondents No.1 and 2 respectively raising a demand of Rs. 5,39,275/ - including interest of Rs. 2,48,280/ - under Section 234 -B of the Income Tax Act, 1961 (in short, "the Act") for 93 months against the petitioner.
(2.) A few facts relevant for the decision of the controversy involved, as narrated in the petition, may be noticed. The petitioner is an agriculturist. The dispute in this present case relates to the sale of land measuring 7 kanals 8 marlas by the petitioner, which was purchased by him on 21.7.1995. The cost of acquisition at the time of purchase of the said land was Rs. 2,10,000/ -. The petitioner had also incurred expenses relating to earthwork and fencing etc. to the tune of Rs. 4,70,000/ -. According to the petitioner, taking the indexed cost as per the index for the impugned year, the total cost of acquisition worked out to be Rs. 12,79,417/ -. On 13.5.2013, the said land was sold for Rs. 4 lacs by the petitioner vide registered sale deed dated 13.5.2003, Annexure P.2. The value of land for the purpose of stamp duty was worked out at Rs. 13,87,500/ - and stamp duty of Rs. 83,250/ - was affixed on the same. The petitioner filed his return for the year in question which was below the taxable limit. However, his case was reopened under Section 147 of the Act and notice dated 24.3.2011 was issued to the petitioner. The petitioner appeared and pleaded that he had sold the entire land of 7 kanals 8 marlas and not 1 kanal as alleged. It was also urged that the cost of acquisition for the entire land worked out to be Rs. 12,79,417/ - and, therefore, the proceedings should be finalised accordingly. The Assessing Officer vide order dated 30.12.2011, Annexure P.5 framed the assessment and calculated the taxable capital gain on Rs. 13,34,842/ - by taking the land sold to be 1 kanal only. After determining the tax at Rs. 2,66,968/ - and interest under Section 234 -B of the Act to the tune of Rs. 2,48,280/ - and under Section 234 -A of the Act for Rs. 24,027/ -, the total tax demand was raised to the tune of Rs. 5,39,275/ -. Aggrieved by the order, the petitioner filed revision petition under Section 264 of the Act before the Commissioner of Income Tax, Amritsar (in short, "the CIT"), inter alia, pleading that he had sold his entire land and not only 1 kanal. It was further averred that principles of natural justice had not been followed while passing the assessment order. Vide order dated 4.3.2013, Annexure P.8, the revisional authority dismissed the revision petition. Hence the present petition by the petitioner.
(3.) MR . Gurmeet Singh, Income Tax Officer (Tech.), Amritrsar is present in person in pursuance to the order passed by this Court on 24.3.2014. We have heard learned counsel for the parties and perused the record.;