2018 (12) TMI 1952 - HC - Income Tax

Validity of Income Tax Act proceedings upheld, despite non-seller status. Reopening assessment and addition to income upheld.

SHAILESH S. PATEL Versus INCOME TAX OFFICER, WARD -5

The Gujarat High Court upheld the validity of proceedings under section 147 of the Income Tax Act, 1961. It ruled in favor of the tax authorities ... Reopening of assessment u/s 147 OR proceedings u/s 153C - HELD THAT:- As substantial questions of law arise for consideration: (i) Whether on the facts and in the circumstances of this case, the Income Tax Appellate Tribunal was justified in upholding the validity of the proceedings under section 147 of the Income Tax Act, 1961? (ii) Whether on the facts and in the circumstances of this case, the Income Tax Appellate Tribunal was justified in holding that the proceedings under section 147 were rightly taken instead of proceedings under section 153C of the Income Tax Act, 1961? (iii) Whether on the facts and in the circumstances of this case, the Income Tax Appellate Tribunal was justified in upholding the reopening for the assessment year 2012- 13? (iv) Whether on the facts and in the circumstances of this case, the Income Tax Appellate Tribunal was justified in upholding the addition of Rs.1,22,24,800/- in the assessment year 2012-13, despite the fact that the appellant was not a seller or even the confirming party in the sale deed? The Gujarat High Court heard a case regarding Income Tax Act, 1961. The court admitted the case and identified four substantial questions of law for consideration. These questions included the validity of proceedings under section 147, the justification for not using section 153C, the reopening of assessment for the year 2012-13, and the addition of Rs.1,22,24,800 despite the appellant not being a seller in the sale deed.