TaxTMI 
TaxTMI 
2017 (5) TMI 836
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.... instead of actual sale consideration of Rs. 6 lacs. Assessee by : Dr. Rakesh Gupta & Shri Somil Aggarwal, Advocate Department by: Ms.Bedobani, Sr. DR Date of Hearing 03/05/2017 Date of pronouncement 16 /05/2017 2. Briefly the facts of the case are that assessee filed return of income declaring income of Rs. 61,288/-. The AO reopened the assessment u/s 148 of the I.T. Act. During the year, the assessee has claimed to have sold a plot situated at 65/69 New Rohtak road, New Delhi for a total consideration of Rs. 6 lacs. The said plot was purchased in the year 1991 and after indexation NIL capital gain was declared on the said transaction. The AO received information that the said plot was actually sold for Rs. 40 lacs whereas assessee has de....
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....d as under :- "Reasons for Action under section 147 of the I.T. Act, 1961 for the A.Y. 2005-06 in the case of Shri Krishan Gopal Prop. M/s. Kay Pee Lock Ind. 221 Teliwari, Delhi - 110 006. Date : 21.3.2012 The assessee filed a return of income on 2005 declaring total income of Rs. 61,288/-. As per information received the assessee has entered into an agreement to sell a property bearing No. 65/59, New Rohtak Road for a consideration of Rs. 40,00,000/- whereas the sale deed for the said property was executed for Rs. 6,00,000/- therefore there is an escapement of capital gain of Rs. 34,00,000/- for the assessment year 2005-06. This capital gain has been calculated with reference to Rs. 6,00,000/- as sale price instead of agreement va....
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....e case of Ms. Arati Bhargava vs. Kavi Kumar Bhargava 1991 (3) Civil Court Cases - P. 377 (Delhi High Court) in which it was held that "further documents sought tobe produced was photo copy of original document and same cannot be admitted in evidence ". Ld. Counsel for assessee also relied upon the decision of the Supreme Court in the case of Moosa S Madha & Azam S. Madha vs. CIT (1973) 89 ITR 0065 (Supreme Court) in which it was held that photo copies have very little evidentiary value. He has also relied upon decision of Kerela High Court in the case of CIT vs. Smt. K.C. Agnes (2003) 262 ITR 354 in which it was held that "unless it is proved that the agreement was acted upon and unless the amount stated in the agreement was paid for the sa....
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....and conclusion drawn by the AO before issuing the notice u/s 148 of the Act. The AO is not competent person to compare the signature from the photocopy copy with the original signature on the sale deed. Thus it was a mere suspicion on the part of the AO that assessee received higher sale consideration. Therefore there cannot be a reason to believe with the AO to reopen assessment in the matter on vague information considering inadmissible document for forming the belief to reopen the assessment. 7. Ld. Counsel for assessee further submitted that since no specific material was available with the AO for reopening of the assessment therefore the AdCIT also granted approval for reopening of the assessment in a mechanical manner. He has not sat....
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....ing. It is not as if the CIT(A) has to record elaborate reasons for agreeing with the nothing put up. At the same time, satisfaction has to be recorded of the given case which can be reflected in the briefest possible manner. In the present case, the exercise appears to have been ritualistic and formal rather than meaningful, which is the rationale for the safeguard of an approval by a higher ranking officer. For these reasons, the Court is satisfied that the findings by the ITAT cannot be disturbed." 9. On the other hand Ld. DR submitted that Additional Commissioner has applied his mind to the fact of the case before granting approval to the reopening of the assessment. 10. Considering the facts of the case, it is clear that there was o....