2016 (6) TMI 700

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....ividual. For the assessment year 2008-09, the petitioner had filed the return of income on 30.03.2009 declaring total income of Rs. 2.44 lacs (rounded off). The return was taken in scrutiny. The Assessing Officer passed order of assessment on 22.12.2010 assessing income of the assessee at Rs. 2.41 lacs (rounded off). 4. In the return of income, the assessee had disclosed purchases of two immovable properties made by him during the relevant previous year at a cost of Rs. 61.76 lacs (rounded off) and Rs. 54.59 lacs along with two other persons. The assessee however, had also sold an immovable property under a deed dated 19.07.2007 for sale consideration of Rs. 33.97 lacs (rounded off). He had not disclosed this sale in the return for the a....

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....he assessee to disclose fully and truly all the material facts necessary in the return of income. Hence, notice u/s. 148 r.w.s. 147 of the I.T.Act 1961 is to be issued for the A.Y. 2008-09. I am therefore, Satisfied that this is a fit case for invoking the provisions of section 147 of the Income - Tax Act, 1961 for A.Y. 2008-09." 6. Learned counsel Shri Soparkar for the petitioner submitted that purchases of two immovable properties were duly reflected in the assesse's return. These transactions were noticed by the Assessing Officer in the original assessment proceedings. There was no failure on the part of the assessee to disclose material facts. He further pointed out that the assessee was not the sole purchaser and that the sha....

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....valued at Rs. 61.76 lacs and Rs. 54.59 lacs respectively, whereas, he had filed return disclosing income of Rs. 2.47 lacs only. The Assessing Officer was of the opinion that when assessee had purchased two properties at such sizable cost, he could not have shown income of only Rs. 2.44 lacs. He therefore, concluded that 'income to the extent of huge transaction of Rs. 1,16,35,500/- ... had escaped assessment for AY 2008-09 ...'. This reason completely lacks logic. There is no direct corelation between the purchase of properties by the assessee and his disclosure of the income during a particular period. The reason is vague and relies on the presumptions on the part of the Assessing Officer. He seems to be presuming that when the ass....