2015 (1) TMI 431

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....8 was completed in summary at an income of Rs. 1,99,613/-. It apparent from the records that the during the financial year 2006-07, the assessee has earned capital gain of Rs. 2,69,47,709/- out of which Rs. 2,55,56885/- was claimed exempted u/s 54 by investing in residential property and remaining portion was set off against brought forward capital loss. It is observed that the property transferred by the assessee was agriculture land not a residential property. Therefore, the capital gain arising out of it is not eligible for exemption u/s 54. The same has resulted in under assessment of taxable income of Rs. 2,55,56,885/-. In view of the above facts, I have reason to believe that an income of Rs. 2,55,56,885/- has escaped assessment with....

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....ncome, the assessee had disclosed sale consideration of Samalkha property and had also disclosed having purchased a residential property at Vasant Vihar and 50% share in a DLF house for claiming exemption under Section 54 of the Act. It is not understood on what basis the Assessing Officer assumed that Samalkha property was agricultural land. The property was located in Rajokri in the National Capital Territory of Delhi and had a built-up area of 3,605 sq. ft. and was also subjected to property tax. The records reveal that on 21st October, 2011, the assessee had informed the Assessing Officer that they had sold the said property and had enclosed the papers including his wealth tax return, house tax notice, valuation report, etc. and also th....

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....these reasons in writing. The reasons so recorded should have some basis or support and not a mere gossip. The reasons cannot be a mere pretence and should be held in good faith. The expression "reasons to believe" predicates a belief which is founded and induced by existence of palpable or cogent material or information. Reason to suspect cannot amount to reason to believe. As it is the beginning of the inquiry, having a prima facie opinion is sufficient; and irrebuttable conclusive evidence or finding is not required. But the prima facie formation of belief should be rational, coherent and not ex facie incorrect and contrary to what is on record. As noticed in paragraph 3 above, the facts recorded are incorrect. Secondly, the reasons must....