2018 (5) TMI 1435

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....r is a private limited company and is engaged in the business of diamond cutting and polishing. For the assessment year 2012-13, the petitioner had filed the return of income, declaring total income of Rs. 21.77 lakhs (rounded off) on 29.09.2012. Such return was taken in scrutiny by the Assessing Officer who passed the order of assessment under section 143(3) of the the Income Tax Act, 1961 ('the Act' for short) on 31.03.2015 making additions of Rs. 63.24 lakhs to the petitioner's returned income. During such assessment, one of the issues examined by the Assessing Officer was the petitioner's claim of capital loss. After asking the petitioner to justify the same, he made no disallowance in the order of assessment, of course,....

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.... 91-92 (cost/199/7 85 1,70,594 11,63,423 992829 Accordingly, the long term capital gain of Rs. 9,92,829/is required to be brought to tax. I have, therefore, reason to believe that income of Rs. 9,92,829/has escaped assessment within the meaning of section 147 of the I.T. Act, 1961. It is, therefore, necessary to initiate action u/s.147 of the I.T. Act, 1961 in the case of the assessee for A.Y.2012-13." 5. The petitioner raised objections to the notice of reopening under a letter dated 09.09.2017. By an order dated 13.11.2017 however, such objections were rejected. 6. Having heard learned counsel for the parties and having perused the documents on record, we find the following facts; I. In the reasons, the As....

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....by the assessee also, he had given similar figures, however, in different break up relating the sale of industrial plot at Mangrol. The assessee did disclosed that the indexed cost was Rs. 1.76 lakhs and the sale consideration was Rs. 11.63 lakhs. However simultaneously, he had also shown that he had spent Rs. 13.64 lakhs in construction of a building and taken the sale price of the building at Nil. Whatever be the validity of the petitioner's such working out, the fact remains that when the Assessing Officer showed his curiosity in this respect, the petitioner made further elaborate representation pointing out that the petitioner had received total sale consideration of Rs. 11.63 lakhs through sale of the land with building. He combine....