Tejpal Singh Vs ITO (ITAT Jaipur)
Agreed Addition Not Final Word:- Compulsory Acquisition by NHAI May Be Tax-Free: ITAT Jaipur Orders Fresh Examination
The Jaipur Bench (SMC) of the ITAT, vide order dated 31.12.2025, in Tejpal Singh v. ITO, Ward Neem Ka Thana (ITA No. 877/JPR/2025, AY 2014-15), set aside the orders of the lower authorities and restored all three issues to the file of the Assessing Officer for fresh adjudication, granting the assessee relief for statistical purposes.
On the issue of long-term capital gain of ₹99,977, arising from compensation of ₹5.89 lakh received on compulsory acquisition of agricultural land by NHAI, the Tribunal noted that although the assessee had not claimed exemption u/s 10(37) earlier, all relevant facts—namely compulsory acquisition and agricultural nature of land—were already on record. Since eligibility under Section 10(37) requires factual verification, the matter was remanded to the AO to examine the exemption claim after giving due opportunity to the assessee.
Regarding addition of ₹3,32,600 on account of cash deposits, the ITAT found that while the CIT(A) had rejected the AO’s peak credit theory, he still confirmed the addition without properly examining the assessee’s cash-flow statement, withdrawal history and explanation. Holding that the issue was not adjudicated in the correct factual perspective, the Tribunal restored this issue also to the AO for fresh consideration.
On denial of deduction u/s 80C of ₹11,020 (tuition fees), the Tribunal observed that the employer had already allowed the deduction while computing TDS as reflected in Form 16, and the AO ought to have made enquiries from the employer instead of outright denial. This issue too was remanded for verification and re-adjudication.
Accordingly, all grounds were allowed for statistical purposes, with directions to the AO to reconsider the matters afresh in accordance with law after granting reasonable opportunity to the assessee.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
The present appeal has been filed by the assessee against the order passed by the Commissioner of Income Tax, Appeal (ld. CIT(A)), ADDL/JCIT (A), Aurangabad, under Section 250 of the Income Tax Act, 1961, (hereinafter referred to as “Act”).
