TaxTMI 
TaxTMI 
2022 (9) TMI 963
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....(3) r.w.s. 147 of the Income Tax Act, 1961 (the Act) concerning AY. 2010-11. 2. The ground of appeal raised by assessee reads as under: "1. The Ld. C1T (A) erred on facts and in law in upholding the action of Assessing Officer in issuing notice u/s 148 and making consequential reassessment u/s 147 ignoring the fact that neither the reasons recorded were in accordance with the provisions of section 148(2) nor there was any escapement of income within the meaning of section 147 of the Act. 2. The Ld. CIT (A) erred on facts and in law in upholding action of Assessing Officer in treating and disallowing loss of Rs. 34,00,000 /- incurred in property transaction between the appellant and Smt. Neela R Gandhi to be sham and bogus transaction.....
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....aid loss against profit earned in another land transaction was considered not genuine leading to escapement of income to the extent of loss of Rs.34 lacs. The assessee objected to the re-opening vide letter dated 11th June, 2014 and same are part of paper book at page nos. 62 to 64. The Assessing Officer passed order disposing of the objections of the assessee on 16.06.2014 and the same are part of paper book at Pages 69 to 72. Consequently, Assessing Officer passed assessment order u/s 143(3) r.w.s. 147 on 05.03.2015 wherein following additions/ disallowances were made and which are subject matter of appeal before us: (i) Disallowance of loss on sale of property - Rs. 34,00,000/- (ii) Disallowance u/s 14A r.w.r. 8D - Rs. 1,14,869/- &n....
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....8D. In view of the above, we concur the decision of the lower authorities and dismiss this ground of appeal. 7. Now, assessee has come before us by way of second appeal. The lower authorities have made addition of Rs. 34 Lakhs only on the ground that proper registration has not been taken place before the relevant authorities of the State Government. Learned AR has relied on following judgments: (i) Kantibhai Dharamshibhai Narola v. Assistant Commissioner of Income Tax, [2021] 125 taxmann.com 348 (Gujarat) "Section 69B. read with section 148. of the Income-tax Act, 1961 - Undisclosed investments (Reassessment) - Assessment year 2011-12 - During year, assessee sold a land to two individuals for consideration of Rs. 1.46 crores and filed ....
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....d and same was to be set aside - Held, yes [Paras 33, 34, 39 to 41] [In favour of assessee]" (ii) Principal Commissioner of Income-tax v. Shodiman Investments (P.) Ltd. [2018] 93 taxmann.com 153 (Bombay) "Section 147 of the Income-tax Act, 1961 - Income-escaping assessment - Nondisclosure of primary facts (Information) - Assessment year 2003-04 - Whether where Assessing Officer has merely issued a reassessment notice on basis of intimation regarding re-opening notice from DDIT (Inv.), this is clearly in breach of settled position in law that re-opening notice has to be issued by Assessing Officer on his own satisfaction and not on borrowed satisfaction - Held, \ yes - Whether where reasons as made available to assessee for reopening ass....
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....was noted that there were no specific details recorded by Assessing Officer in reassessment notices related to particulars of nature of transaction and regard to name of person with whom such transactions were entered into -Whether since, Assessing Officer had mechanically relied on information provided by Investigation Wing and issued impugned notices without proper application of mind, same were to be quashed - Held, yes [Paras 10, 11 and 12] [In favour of assessee]" (iv) Patel Engineering Ltd. v. Deputy Commissioner of Income-tax, Central Circle [2022] 136 taxmann.com 115 (Bombay) "Section 147. read with section 148, of the Income-tax Act, 1961 - Income escaping assessment - Illustration/Non-disclosure of primary facts (Reasons to be....