TaxTMI 
TaxTMI 
1986 (3) TMI 133
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....aimed exempt." The assessee also submitted a statement along with the original return. In that statement, particulars of the land sold, sale consideration realised "cost of land as on1st Jan., 1954" and other particulars for the computation of the capital gains was also worked out and quantified. It would be useful to extract here what exactly the assessee disclosed in the original return: "Statement showing gain on the sale of Agrl. land into plots in the case of Shri Abhilash Chand Sharma R/o Patharwalan Meerut, A/C period1st April, 1973to31st March, 1974. Total Area sold . Share of 4013 Sq. yard Abhilash Chand . . . 2006.5 sq. yd. . Saleconsideration for the area . . 60,344,00 Less : Cost of l....
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.... ITO issued a notice under s. 148 dt.26th Sept., 1979under s. 147(a). It appears that the assessee made an application under s. 144-A for this assessment year as well as for the asst. yr. 1973-74. The IAC (B-Rang, Merrut) passed an order under s. 144-A in the matter on14th Sept., 1979. This made the following points: (i) The assessee had duly worked out the extent of capital gains and also filed a statement along with the return. But the assessee claimed the capital gains as exempt from tax. Such capital gains were not shown in the return of income and no mention of the same was made in Part III of the return. There was thus omission or failure on the part of the assessee. (ii) The ITO completed the assessment under s. 143(1) acceptin....
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....the cost of development charges: "The assessee has filed the working of cost of land as on 1st Jan., 1954 at Rs. 9 per sq. yard and cost of development charges @ 84 NP sq. yard in view of the appellate order for the asst. yr. 1975-76. Since the assessee had claimed the cost of land @ Rs. 6 per sq. yard development charges in the original papers filed on the basis of certificate of approved Govt. valuer the cost of land as on1st Jan., 1964is taken as shown in the original papers." The assessee appealed. 4. The AAC concluded that there was no case for action under s. 147(a). He noted that the assessee had given a complete working of capital gains, in the statement filed with the original return and had also claimed exemption therefor....
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.... S. Tyagi, ld. counsel for the assessee submitted that by no stretch of imagination could this be taken as a case of s. 147(a). The assessee is only expected to place all materials facts before the ITO. It can be in the return itself or it may be in the form of statements filed at any time before the completion of the assessment. There is no dispute that all the relevant and material facts were placed before the ITO before the original assessment was completed. The assessee was not obliged in law to furnish the inferences also, legal or factual, to the ITO, hence action under s. 147(a) was rightly held to be totally out of question. 6. Even as regards s. 147(b), Shri Tyagi submits that the Revenue has no case. This is because what has ha....
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....ct obtained, the jurisdiction of the ITO is not effected. (b) CIT vs. Ayodhya Kumari (1985) 46 CTR (Raj) 272 : (1985) 154 ITR 604 (Raj). Where reassessment has been made under s. 147(a), it is open to the AAC to treat it as one properly made under s. 147(b) provided that, on the material on record, all necessary conditions prescribed under s. 147(b) are satisfied. The ITO has apparently proceeded under s. 147(a). This does not mean the reassessment has to be struck down as bad in law, if one the material on record the notice issued under s. 148 for this year could be shown to have been issued validly in terms of s. 147(b). The notice in question was issued and served on the assessee on4th March, 1979for this assessment year. The....