TaxTMI 
TaxTMI 
2023 (6) TMI 49
X X X X Extracts X X X X
X X X X Extracts X X X X
....ax for the Assessment Year 2016-2017 has escaped assessment within the meaning of Section 147, detailing the information alongwith the supporting documents. The information is detailed in the Annexure in the form of a table, which is extracted below : S.No. Information description Source Amount (Rs.) 1 TDS statement - sale consideration on sale of immovable property (Section 194IA) VENKATACHALAPATHI DIBBUR VENKATESAIAH 5577700 This was followed up with another notice on 10.03.2023. 3. The petitioner is stated to have made out a reply to the said notice dated 16.03.2023 in which details were laid out, setting out the sale consideration relating to the sale deed of 22.11.2015 as Rs.55,77,700/- and also furnishing details of the sale deed by virtue of which the petitioner has purchased the property on 24.09.2011 for consideration of Rs.15,91,735/- (cost of acquisition). It was submitted that since the date of acquisition was in the year 2011 and the sale was in the year 2015 and therefore the long term capital gain would be as follows: Long term capital gain of Sale of Site Date of acquisition 24/09/2011 Date of transfer 22/12/2015 Acqu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....caped assessment and the same has been mentioned even in the enclosure alongwith the show cause notice dated 03.03.2023. Accordingly, it is submitted that it is the income that has escaped assessment that has to be taken note of, which being above Rs.50.00 lakh, the extended period under Section 149(1)(b) would save such notice from the bar of the period prescribed to re-open provided under Section 149(1)(a) of I.T. Act. 9. Learned counsel appearing for the Revenue has also relied upon the memorandum explaining the provisions in the Finance Bill, 2021 to justify such interpretation. 10. Heard both sides. 11. What needs to be noted in the present case is that the income stated to have escaped assessment which has been taken note of seeking to re-open the assessment for the Assessment Year 2016-2017 is the sale transaction with Sri D.V. Venkatachalapathi. The time prescribed for such reopening of assessment by virtue of proceedings under Section 148 is provided under Section 149. Relevant extract of Section 149 reads as follows:- "149.(1) No notice under section 148 shall be issued for the relevant assessment year.- (a) if three years have elapsed from the end of the relevant....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is to be issued based on the information/explanation provided by you on the above information to this office. Please note that the information provided by you will be necessary for arriving at the final conclusion for issuance of notice u/s 148. 14. It is clear that the notice is issued in the context of sale consideration from sale of immoveable property for an amount of Rs.55,77,700/-. As noted above, the reply to the show cause notice, copy of which is enclosed at Annexure-'F1' would reveal the details of sale consideration and the cost of acquisition would be the indexed cost of acquisition in light of the sale leads to accrual of long term capital gain. 15. In the present case on hand, clearly, the income that has escaped assessment is the proceeds from the sale as made out from perusal of the Annexure to the show cause notice at Annexure-'C'. In case of income arising from the sale of property which may fall within the purview of Section 48 so as to amount to capital gains, it is relevant to notice that Section 48 provides for mode of calculation of income chargeable under the head 'Capital Gains'. Section 48 reads as follows:- "48. The income char....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... "148A. The Assessing Officer shall, before issuing any notice under section 148, -- (a) conduct any enquiry, if required, with the prior approval of specified authority, with respect to the information which suggests that the income chargeable to tax has escaped assessment; (b) provide an opportunity of being heard to the assessee, with the prior approval of specified authority, by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a); (c) consider the reply of assessee furnished, if any, in response to the show-cause notice referred to in clause (b); (d) decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a....