SEC 148 INCOME TAX

[puneet virmani]

3 BROTHERS SOLD PROPERTY AS 1/3RD YEAR EACH, ALL INVESTED IN SEPARATE PROPERTY AND TAKEN BENEFIT U/S 54..ONE BROTHER WAS ASSESSED U/S 143(3) WHEREIN DEMAND WAS CREATED ON BASIS OF DIFFERENCE IN VALUATION OF PROPERTY RATES I.E CIRCLE RATES. REST TWO BROTHERS RECEIVED NOTICE FROM I.T.O FOR REASSESSMENT U/S 147...... QUERY IS WEATHER ITO ON BASIS OF ADDITION IN INCOME OF ONE BROTHER CAN ITO GIVE NOTICE N REASSESS OTHER TWO BROTHERS, IT THIS ADDITION A SUBSTANTIAL EVIDENCE TO REASSESS.

AI Summary

Can Income Tax Officer Reassess Two Brothers Based on Valuation Addition for Third? Section 147 Notices Explored. Three brothers sold a property, each owning a one-third share, and invested in separate properties, claiming benefits under Section 54 of the Income Tax Act. One brother was assessed under Section 143(3), resulting in a demand based on property valuation differences. The other two brothers received reassessment notices under Section 147. The query concerns whether the Income Tax Officer (ITO) can issue reassessment notices to the other two brothers based on the valuation addition for the first brother. The response indicates that if the addition is confirmed for the first brother, reassessment can be initiated, but the notice can be contested.