KANAV KHANNA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The documents Annexures P.17 to P.19 alongwith the application are taken on record subject to all just exceptions. CM stands disposed of.

(2.) Prayer in this petition filed under Articles 226/227 for quashing the orders dated 22.10.2013, 18.9.2013 and 30.3.2013, Annexures P.1 to P.3 respectively passed by the respondent-authorities raising demand of Rs. 1,28,36,480/- against the petitioner. Further prayer has been made for restraining the respondents from taking coercive action for recovery of the amount till the disposal of the appeal of the petitioner before respondent No.4.

(3.) Briefly, the facts necessary for adjudication of the controversy involved, as available on the record may be noticed. The petitioner is an individual. Return declaring income of Rs. 19,93,025/- was filed on 19.4.2010 which was processed under section 143(1) of the Act on 19.4.2011. The case was selected for scrutiny. Notice under section 143(2) of the Act was issued on 27.8.2011.The assessee is earning income from other sources. He claimed that land measuring 3 kanals 17 marlas bearing Khasra No.1034/3 and 2 kanals 8 marlas bearing Khasra No.1444 was acquired by the SDMcum- competent authority-cum-Land Acquisition Collector, Amritsar and he received payments on account of acquisition of land. The total amount of compensation received was Rs. 8,57,41,680/- on which TDS of Rs. 96,80,881/- was deducted as per provisions of Section 194LA of the Act. In the return, the assessee showed long term capital gain at Rs. 8,32,58,783/- on the amount of compensation received which was claimed as exempt under Section 10 (37) of the Act. According to the petitioner, the capital gains, as per provisions of Section 10(37) of the Act could be treated as exempted if the land acquired was being used for agricultural purposes during the period of two years immediately preceding the date of transfer. The assessment order was passed vide order dated 30.3.2013 creating tax demand of Rs. 1,28,36,480/-. The assessee-petitioner filed an appeal before respondent No.4 against the assessment order on 8.4.2013. The assessee filed an application for stay of demand on 16.8.2013 before respondent No.2. The said application was disposed of vide order dated 18.9.2013, Annexure P.2 by the Deputy Commissioner of Income Tax, Circle V, Amritsar with the direction that the assessee shall deposit a sum of Rs. 64,18,240/- i.e. 50% of total demand of Rs. 1,28,36,480/- by 30th September 2013 and the balance due of Rs. 64,18,240/- through two installments at the rate of Rs. 32,09,120/- each on or before 24.12.2013 and 24.3.2014 respectively. The application for stay of demand before the Commissioner of Income Tax II was dismissed vide order dated 22.10.2013, Annexure P.1. Hence the present petition.