Tribunal Upheld Re-Assessment Under Section 148, Emphasizing Credibility of Info

The Tribunal upheld the re-assessment proceedings under section 148 of the I.T. Act, emphasizing the credibility of information available to the Assessing Officer. The Tribunal noted the lack of cooperation from the assessee, leading to an ex-parte assessment order. Challenges against the reopening of assessment and calculation of capital gains were dismissed due to insufficient arguments. The appeal grounds related to interest charges were also rejected as the assessee did not contest them. Consequently, the Tribunal dismissed the appeal of the assessee.

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Issues:
1. Challenge to re-assessment proceedings under section 148 of the I.T. Act.
2. Calculation of capital gain without considering cost of improvement.
3. Challenge to levy of interest under section 234B and 234C of the I.T. Act.
4. General exemption claimed while computing tax on assessed long term capital gains.

1. Challenge to re-assessment proceedings under section 148 of the I.T. Act:
The appeal contested the re-assessment proceedings under section 148 of the I.T. Act, claiming no notice was received, thus lacking an opportunity to explain facts. However, the Ld. CIT(A) found that adequate opportunities were provided during appellate and remand proceedings, dismissing the grievance.

2. Calculation of capital gain without considering cost of improvement:
The assessee disputed the assessment order for not allowing cost of acquisition and improvement expenses totaling &8377;10,74,842. The Ld. CIT(A) observed that the assessee did not object to the value of consideration determined under Section 50C but contested the determination of cost of acquisition and improvement. The claim for development expenses lacked evidence, leading to dismissal by the Ld. CIT(A).

3. Challenge to levy of interest under section 234B and 234C of the I.T. Act:
The assessee claimed a general exemption of &8377;1 lakh while calculating tax on assessed long term capital gains, which was allowed by the Ld. CIT(A). However, the challenge against charging interest under sections 234B and 234C was dismissed by the Ld. CIT(A).

4. General exemption claimed while computing tax on assessed long term capital gains:
During the proceedings, the assessee claimed a general exemption of &8377;1 lakh while computing tax on assessed long term capital gains, which was granted by the Ld. CIT(A).

The Tribunal found that the re-assessment proceedings were justified due to credible information available to the Assessing Officer (A.O.) regarding the sale of property and the difference in valuations. The Tribunal noted that the assessee did not cooperate in the re-assessment proceedings, leading to an ex-parte assessment order. The challenge against the reopening of the assessment was dismissed, emphasizing the need to determine the validity based on the reasons recorded for reopening. The Tribunal also highlighted that the assessee failed to challenge the findings of the A.O. regarding non-cooperation. Additionally, the Tribunal dismissed the appeal grounds related to the calculation of capital gains and interest charges as the assessee did not argue these points, indicating a lack of challenge to the findings of the Ld. CIT(A). Ultimately, the appeal of the assessee was dismissed by the Tribunal.

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