Case Law Details
Om Parkash Vs ITO (Delhi High Court)
Introduction: In the recent case of Om Parkash Vs ITO, the Delhi High Court addressed the issue of taxation on the sale of agricultural land without adjusting the cost of acquisition. The court dismissed the writ petition, directing the petitioner to seek a statutory remedy.
Analysis: The case revolved around the assessment year 2014-15, marking the second round of litigation for the petitioner. Mr Sultan Singh Khatri, the petitioner’s counsel, argued that the assessment order was flawed for several reasons, including the lack of a notice under Section 143(2) of the Act, the entire sale consideration being taxed without adjusting for the cost of acquisition, and the non-application of Section 54B of the Act.
On the other hand, the respondent’s counsel, Mr Aseem Chawla, contended that the petitioner did not provide sufficient details to establish the rural agricultural nature of the land in question. He also conceded that the entire sale consideration should not have been subject to tax.
The court directed the petitioner to appeal to the Commissioner of Income Tax (Appeals) and ensured no precipitate action would be taken against the petitioner in the interim. It also ordered that an application for stay with the relevant authority be filed within ten days.
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