TaxTMI 
TaxTMI 
2023 (2) TMI 449
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....was Rs.93.7 lacs. The Assessee claimed to have purchased the said property for a consideration of Rs.4 lacs on 13.05.1997 as per purchase deed. However, the Assessee neither disclosed this transaction before the department nor claimed any long-term capital gain and paid the relevant taxes in the year under consideration. Therefore, a notice u/s. 148 of the Act dated 08.10.2013 was issued to the Assessee, in response to which, the Assessee failed to file its return of income. Therefore, reminders dated 12.11.2013 and 27.11.2013 have also been issued. Ultimately, the Assessee by filing her return of income on dated 21.03.2014 declared a taxable income of Rs.1,95,600/- with the note, 'In the original return of income no rent was received from Kothi No. 88, Hill Street, Meerut amounting to Rs.36000/- as there was dispute with the tenants. On the receipt of notice u/s. 148, the rental income amounting to Rs.36,000/- has been disclosed on accrual basis like last year to extend the cooperation with the department'. 2.1 The Assessing Officer perused the aforesaid note appended below the computation of income by the Assessee and observed that it is also interesting to mention here that t....
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....urn of income in compliance to notice issued u/s 148 and participated in assessment proceedings, the validity of assessment proceedings cannot be questioned and the order passed in pursuance to the notice issued u/s 148 of The Act is valid. The Id. AR is only trying to complicate matter by making copious arguments and doing hair splitting on the issue of service of Notice where as the conduct of the Assessee of filing return and participating in the reassessment proceedings proves that there is no infirmity in the service of notices as well as the consequential reassessment order u/s 148/143(3) of the Act. Accordingly, Grounds of Appeal relating to this issue are hereby rejected. The other issue involved in the appeal is addition on account of capital gains on sale of house property No 88 , Hill street, Meerut Cantt. The A.O has made addition as the resultant capital gains were not offered for taxation on sale of house property. The addition has been made by applying the provisions of sec 50C of The Act. The only argument of the A.R in appellate proceedings is that the Assessee has not given the possession of the property, so the capital gains have not accrued to ....
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....eme Court decision in the case of NTPC Limited 229 ITR 383 (SC). 4.2 On the contrary, ld. DR refuted the claim of the Assessee. 4.3 We have heard the parties on the point of admission of additional grounds and given thoughtful consideration to the peculiar facts and circumstances, with regard to raising of additional grounds and are of the considered view that the grounds raised by the Assessee are purely legal in nature and goes to the root of the assessment order itself, hence, we are allowing and admitting the additional grounds raised by the Assessee and proceeding to decide the case on merit. 5. Heard the parties on additional grounds and perused the material available on record. The Assessee drew our attention directly to para No. 8 of the assessment order, wherein, a reference of an application dated 29.12.2014 has been given, by which the Assessee demanded to supply some documents and name and particulars of the person who received the notice u/s 148 of the Act. The reply was given on 01.01.2015 by the Assessing Officer, wherein the following facts have been disclosed: a) Supply of copies of order sheet entries is not possible. However, you are free to mak....
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....ssee, has been served and the Assessee would be barred from taking any objection about not serving the notice or in time or in proper manner. 7. On the rival claims of the parties, the issue emerge, once the Assessee participated in the assessment proceedings and did not raise any objection with regard to non-issuing of the notice u/s. 143(2) of the Act or not serving such notice in time or service of such notice in improper manner, during the assessment and appellate proceedings before the AO and the ld. Commissioner respectively, then as per the provisions of section 292BB of the Act, whether the Assessee would be precluded from challenging the Assessment order, for non-issuance of notice or non-service of notice within time or service of notice in improper manner ? 7.1 Hon'ble Apex Court in the case of ACIT vs. Hotel Blue Moon (2010) 321 ITR 362 (supra) has clearly approved the view of Hon'ble High Court to the effect that the provisions of section 142 and sub-section (2) and (3) of section 143 will have mandatory application. Further, Hon'ble Apex Court in the case of CIT vs. Laxman Das Khandelwal (Civil Appeal No. 6261 - 6262 of 2019) decided on 13.08.2019, while conside....