https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=458149 https://www.taxtmi.com/caselaws?id=458149 Re-characterizing the sale of the land in return filed u/s. 148 - classification of Gain on sale of land - capital gains v/s business income - gain/accretion on sale of the lands in question was to be assessed under the head Profit and Gain of Business or Profession as claimed by in his return filed u/s. 148 HELD THAT:- As observed by the Hon ble Supreme Court in the case of CIT Vs. Sun Engineering Works P. Ltd.[ 1992 (9) TMI 1 - SUPREME COURT] the jurisdiction of the A.O in the course of reassessment proceedings initiated u/s. 147 of the Act is confined to only such income which has escaped tax or has been under-assessed and does not extend to revising, reopening or reconsidering the whole assessment; or permitting the assessee to re-agitate questions which had been decided in the original assessment proceedings. Also, as observed by the Hon ble Apex Court the proceedings u/s 147 of the Act is for the benefit of the revenue and an assessee cannot be permitted to convert the reassessment proceedings as his appeal or revision, in disguise, and seek relief in respect of items earlier rejected or claim relief in respect of items not claimed in the original assessment proceedings, unless the same was relatable to escaped income - even in cases where the claims of the assessee during the course of reassessment proceedings relating to the escaped assessment are accepted, still the allowance of such claims has to be limited to the extent to which they reduce the income to that originally assessed and the income for the purposes of reassessment cannot be reduced beyond that originally assessed. As in the case before us the assessee in the garb of reassessment proceedings which were initiated by the AO for assessing his escaped income u/s. 147 of the Act, had tried to seek re-characterizing the sale of the land in question as transaction of sale of stock-in-trade as against that claimed by him as sale of a capital asset in his original return of income, therefore, raising of the aforesaid claim of the assessee clearly falls beyond the realm of Section 147 of the Act, and thus, had rightly been rejected by the lower authorities. No infirmity in the view taken by the lower authorities who had rightly rejected the assessee s claim for assessing the gain/surplus arising from sale of the lands in question as his business income, uphold the view taken by them. Applicability of Section 50C of the Income-tax Act for recomputing capital gains - As the income of the sale of land in question was to be brought to tax under the head capital gains , therefore, the claim of the assessee that the provisions of section 50C would not stand triggered qua the lands in question which were held by him as stock-in-trade fails on the said count itself. Deduction u/s 54B - Also, finding no infirmity in the declining of the assessee s claim for deduction u/s. 54B of the Act by the A.O, for the reason that the same was not substantiated on the basis of any supporting documentary evidence, we uphold the order of the CIT(Appeals) to the extent he had concurred with the view taken by the AO. Thus, finding no merit in the appeal filed by the assessee before us, we dismiss the same. Decided against assessee. Case-Laws Income Tax Tue, 07 Jun 2022 00:00:00 +0530