COMMISSIONER OF INCOME TAX Vs. A. VIJAY KUMAR

JUDGEMENT

(1.) THE respondent is an assessee. For the assessment year 1995 -96, he declared the taxable income at Rs. 1,33,770/ -. He appended a note to the returns to the effect that he acquired rights vis -a -vis an item of immovable property being Ac.24.20 cents of agricultural land in a Village in Nellore District, for a consideration of Rs. 10,60,000/ - through a Memorandum of Understanding (MOU), dated 25.12.1993 and he has transferred the same for a consideration of Rs. 34,08,500/ - in favour of M/s. Seamen Aqua Farms Limited, of which he is a Managing Director. It is stated that the profit earned by him in the process cannot be treated as taxable income, since it is in respect of an agricultural land. Similar claim was made in respect of Ac.5.71 cents of land dealt with by a HUF, of which the respondent is the Karta. The Assessing Officer accepted the claim of the respondent and passed an order of assessment.

(2.) THE Commissioner of Income Tax exercised his powers under Section 263 of the Income Tax Act, 1961 (for short 'the Act') and issued notice to the respondent proposing to pass a revised order. According to him, the Assessing Officer did not take the contents of the MOU into account and erroneously failed to bring the income earned by the assessee under the purview of the tax. After hearing the respondent, the Commissioner passed an order, dated 06.03.2000 bringing the sums of Rs. 23,48,500 and 7,49,780/ - to tax. Aggrieved by that, the respondent filed I.T.A. No. 417/Hyd/2000 before the Hyderabad Bench of the Income Tax Appellate Tribunal. Through its order, dated 27.03.2001, the Tribunal allowed the appeal and set aside the order passed by the Commissioner. Hence, this appeal by the Revenue under Section 260 -A of the Act.

(3.) NO one had entered appearance for the respondent.