TaxTMI 
TaxTMI 
2021 (2) TMI 885
X X X X Extracts X X X X
X X X X Extracts X X X X
....l representative in place of the deceased Baldevbhai Mangaldas Patel. An affidavit to that effect has also been filed along with the application. Since income-tax proceeding is not a proceeding where title can be decided, and therefore L/Rs. of deceased Baldevbhai Mangaldas Patel are to be taken on record. Therefore, we implead (i) Shri Mehul Baldevbhai Patel, (ii) Shri Dipak Baldevbhai Pael, and their mother (ii) Taraben Baldevbhai Patel as legal heirs of the deceased Baldevbhai Mangaldas Patel. This fact is to be verified by the AO, and if the parties have any dispute with regard to the above factual facts, they can be raised before the AO. Now we proceed to decide the appeal. 3. Originally, the assessee has taken seven grounds of appeal, and thereafter he has filed additional grounds of appeal, whereby he took two more grounds. The grounds taken by the assessee are argumentative and descriptive in nature. In brief, the grievance of the assessee revolves around two isssues viz. if reopening of the assessment is valid, then what should be the quantum of long term capital gain requires to be assessed in the hands of the assessee ? 4. Brief facts of the case are that the asses....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd truly all material facts necessary for his assessment, far that assessment year and income has escaped assessment to that extent of Rs. 71,38,845/-, Thus it is a fit case for re-opening the assessment u/s. 147 of the IT Act 1961 for A. Y. 2008-09. 3. This office is intimating you regarding the directions issued by the Gobble High Court of Gujarat in the case of Sahkari Khand Udhyog Mandal Ltd, Vs. ACIT Navsari Circle in Special Civil Application No, 3955 of 2014. The directions are reproduced hereunder: (i) Once the AO serves to an assessee a notice of reopening of assessment under section 148 of the Income Tax Act, 1961, and within the time permitted in such notice, the assessee files his return of income in response to such notice, the AO shall supply the reasons recorded fey him for issuing such notice within 30 days of the filing of the return by the assessee without waiting for the assessee to demand such reasons. (ii) Once the assessee receives such reasons, he would be expected to raise his objections, if he so desires, within 60 days of receipt of such reasons. (iii) If objection are received by the AO from the assessee within the time....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f Rs. 30,96,132/- was dishonoured with the remark that "opening balance insufficient". A dispute arose between the vendors and vendees. The assessee did not deliver possession to the vendee, and challenged mutation sanctioned by the Revenue officials, on the basis of the above sale deed before the higher authorities. The District Collector has directed the parties to maintain status quo and also restrained the Revenue authorities for giving effect to any changes in the Revenue record. Copy of this order was also placed before us. It is also brought to our notice that though it is a subsequent development after passing of regular assessment under section 143(3), but it is a relevant development. The assessee has filed civil suit bearing no.283 of 2016 before the Civil Judge, Sr.Division at Mirzapur, Ahmedabad for cancellation of the sale deed made earlier. The assessee applied to the sub-Registrar for cancellation of the sale deed. With the above background, we have to examine certain other facts. 7. The Annual Information report wing of the Department collected information of the sale deed and informed the AO. On 5.2.2010 the AO has confronted the assessee this AIR information, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....have gone through the record carefully. A perusal of section 147 would indicate that where the AO has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may subject to provisions of sections 148 to 153 assessee or re-assess such income. The fundamental requirement for reopening is that there could be some information to the AO which has nexus in forming a belief that income has escaped the assessment. In the case on hand, firstly, in the reason recorded by the ld.AO, and extracted (supra), we find factual inaccuracy. In the original assessment framed under section 143(3) of the Act by the then Assessing Office categorically stated that assessee's representative submitted details, as called for and the same are tallied with the AIR information, whereas in the reason for reopening of the assessment dated 14.08.2015 simply stated that as per the information gathered, the assessee has sold the land of Block No.212 of Shela village for the consideration of Rs. 71,38,845/- on 14.3.2014 (This is a typographical error in the reason. The correct date is 14.3.2008. We have verified it from sale deed no.1763. It is dated 14.3.2008) vide sale....