TaxTMI 
TaxTMI 
2014 (11) TMI 642
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....re us, the learned counsel, Shri Vijay Mehta, on behalf of the assessee, submitted that in the cross objection filed by the assessee, the validity of the assessment and the proceedings under section 147, has been challenged which goes to the very root of the matter and, therefore, the same should be taken up first. 3. Brief facts, qua the legal issue raised in the cross objection, are that the assessee is a company engaged in the business of non-ferrous metals, trading in shares / stocks, consumer products and financing. For the relevant assessment year 2004-05, the assessee has filed its return of income under section 139(1) on 30th October 2004, declaring loss of Rs. 78,29,529. As against this, the assessment under section 143(3), was co....
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...., an intimation was received from the ITO 5(2)(4), Mumbai, vide letter no.ITO5(2)(4)/Intimation/2010-11 dt. 14.02.2011 that assessee's company has sold property for Rs. 1,17,00,000 whereas the market value of the property as per deed of agreement registered on 01.01.2004 valued at Rs. 1,44,55,000. Thus, apparently, the provisions of section 50C are applicable in assessee's case. The short term capital gain has been under assessed to the extent of Rs. 2756 lacs. In view of the above, I have reason to believe that income chargeable to tax has escaped assessment for A.Y. 2004-05 by reason of the failure on part of the assessee to disclose fully and truly all material facts necessary for assessment and also by the reason of understatement of in....
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....ssessee's contention. However, on merits, he gave the relief on the ground that the DVO's report which was made available at the stage of first appellate proceedings, the value adopted was Rs. 1,31,06,400, and the DVO himself in his report has given the comparable rates of the nearby flats and on the same comparison, he found that if the lower rate is applied, then what the assessee has shown as sale consideration is on higher side. Therefore, he held that the sale consideration shown by the assessee is at the fair market value. 6. Before us, the learned Counsel for the assessee submitted that during the course of assessment proceedings, the assessee had furnished the copy of agreement for sale of flat, which also contains the details of s....
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....ed the attention of the Assessing Officer. Under the Explanation to section 147, such a re-opening can be done. 8. We have heard the rival contentions and perused the relevant findings of the learned Commissioner (Appeals) on the issue of re-opening under section 147. From the records of the original assessment proceedings, it is seen that the assessee, vide letter dated 19th December 2006, had filed copy of sale agreement to the Assessing Officer. The said sale agreement clearly provides details of sale consideration of the flat which was at Rs. 1.17 crores and apart from that there was a working done by the stamp valuation authorities at the last page whereby they have valued the flat for the purpose of stamp duty at Rs. 1,44,55,400. All....
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.... of information on the same point cannot be held to be new information or any tangible material coming into record. Merely mentioning that the assessee has failed to disclose fully and truly all material facts is not sufficient to acquire jurisdiction within the ambit of proviso to section 147, but the Assessing Officer has to ascribe specifically, what is the failure on the part of the assessee. In the present case, once the entire facts has been disclosed during the course of assessment proceedings, (as brought out herein above), then it cannot be held that there was failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. The assessee is only required to disclose the entire facts and ma....