TaxTMI 
TaxTMI 
2018 (4) TMI 929
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....oring the fact that the three cheques issued by the assessee on 19.10.2011 for Rs. 21,60,000/- each to all the three co-owners could be materialized only during financial year 2013-14 i.e. 21 months later after the execution of Release Deed/purchase deed. 2. That the CIT(A) was not justified in overlooking the fact of three cheques dated 19.10.2011 as mentioned in the Release deed/purchase deed was nothing but the willful design of the assessee to save himself from the allegation that the immovable property so acquired was without consideration. 3. That the CIT(A) has erred in law in not appreciating the fact that the so called consideration of Rs. 64,80,000/- through the three cheques of Rs. 21,60,000/- each from a bank a....
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....he sellers were duty bound to pay capital gain tax even on stamp valuation of the property." 4 2. The following Cross-objection has been taken by the assessee. The Crossobjection is delayed by sixty days of limitation. In the application for condonation of delay, which is accompanied by the assessee's affidavit, it has been stated as follows: "3. During the course of appellate proceedings the AR of the respondent agrees that if he gets due relief on merits of the case, he may not choose to press the ground no. I. This has been reproduced by the Ld. CIT(A) in the Appellate Order. The finding of Ld. CIT(A) on this issue is as "As the appellant has been granted substantive relief on merits of case, there is no need to decide this g....
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....to file objection. Considering the legal position and facts of the case the assessment deserves to be cancelled." 5. The assessee is aggrieved by non-supply to him, of the reasons recorded by the AO to believe escapement of income from tax, though the assessee had made a specific written request to the AO to supply such reasons. 6. In this regard, the ld. DR has placed on record and referred to the AO's letter dated 08.08.2017, addressed to him (the DR). Therein, the AO states that: 6 "In compliance to notice u/s 148 of Income-tax Act, 1961 issued on 19/03/2014, which was duly served upon the assessee on 21/03/2014, the assessee vide his written submission dated 15/04/2014 had requested that " In response to your honor's noti....
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.... accepted the property of Rs. 64,80,000/- on 19/10/2011 which is situated at EA- 110, Sector-A, Indore, through registered deed from Shri Nitin Maheshwari, Vineet Maheshwari & Puneet Maheshwari, without any consideration, within the meaning of the provisions of Section 56(2)(vii)(b) of the I.T.Act." Later on, the assessee has complied the quarries raised by the AO from time to time without pointing out or asking reasons and the assessment was completed by the AO accordingly. Thus, the assessee was well acquainted, with the reasons of re-opening of assessment. Moreover, he applied for the reasons much after lapse of time stipulated in the notice u/s 148 of Income-tax Act, 1961 and during the course of entire assessment proc....
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....e IT Act. The Hon'ble Supreme Court, in 'GKN Driveshafts', 259 ITR 19 (SC), has held that the AO is bound to furnish the reasons within a reasonable time and on receipt thereof, the noticee is entitled to file objections to the issuance of the notice and the AO is bound to dispose of the same by passing a speaking order. 9 10. 'GKN Driveshafts' (supra) was cited by the assessee before the ld. CIT(A) (Impugned order page 12). 11. In the present case, non-supply of the reasons to the assessee is in direct violation of 'GKN Driveshafts' (supra), debarring him from exercising his legal right to file objections against the issuance of the reassessment notice. Conveying the gist of the reasons to the assessee nowhere serves the purpose, as ....