2024 (11) TMI 1205 - SCH - Income Tax

Tax Case Update: Court Rules Family Ties Affect Property Valuation Under Income Tax Law.

MAHENDRA GALA Versus INCOME TAX OFFICER WARD 22 (3) (1) & ORS

The Supreme Court maintained the stay on further proceedings under Section 148 of the Income Tax Act, 1961. It determined that the familial relationship ... Validity of Reopening of assessment u/s 147 - addition invoking Section 50C - as decided by HC [2023 (10) TMI 1454 - BOMBAY HIGH COURT] this is not a fit case to exercise our discretionary jurisdiction under Article 226 of the Constitution of India. Petitioner may raise all grounds which Petitioner has before the AO in reply to the notice u/s 148 - The officer shall consider the objections and points raised by Petitioner and pass such order as he deems fit in accordance with law dealing with all submissions of Petitioner. HELD THAT:- We continue the stay of further proceedings pursuant to the notice under Section 148. The respondents have issued the notice despite the fact that the relationship between the vendor and vendee is that of mother and son. In these circumstances, reference to the circle rate, which may be relevant for the purpose of execution of a sale deed/gift deed, as per the petitioner has no relevance to invoke Section 50C of the Act. Counter affidavit/reply within 3 weeks. Rejoinder within 3 weeks after service of the reply/counter affidavit. The Supreme Court continued the stay of further proceedings under Section 148 of the Income Tax Act, 1961. The Court noted that the relationship between the vendor and vendee is that of mother and son, making the circle rate irrelevant for invoking Section 50C of the Act. Counter affidavit/reply due in 3 weeks, with rejoinder due 3 weeks after. Case to be re-listed in the week commencing 11 November 2024.