TaxTMI 
TaxTMI 
2023 (6) TMI 610
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.... assessment year 2009-10, Revenue preferred this appeal. 2. Brief facts of the case are that the assessee is an individual and practising advocate, deriving income from profession. For the assessment year 2009-10, he filed the return of income on 29/09/2009 declaring an income of Rs. 39,11,390/-. It was processed under section 143(1) of the Income Tax Act, 1961 (for short "the Act"). 3. Subsequently, the learned Assessing Officer noticed that one late Smt. V. Rajyalakshmi sold agricultural land at Rs. 1 crore, but its market value would at Rs. 12,16,74,000/-. She did not declare any income. He further noticed from the contents of the sale deed that Shri Vedula Venkata Ramana, assessee received the entire sale consideration of Rs. 1 cr....
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....hree vendors under the sale deed, but stressed the point that his mother did not receive any amount towards consideration for her relinquishing the rights in the property in question. 6. Learned Assessing Officer obtained information from other sources also. He concluded the assessment by order dated 30/12/2016 passed under section 143(3) read with section 147 of the Act, adding the amount of Rs. 12.16 crores in the hands of the assessee in his individual capacity, which the assessee challenged before the learned CIT(A). 7. Assessee contended before the learned CIT(A) that no notice under section 148 of the Act was issued to the assessee in his individual capacity, but having issued such notices to the assessee in his capacity as 'Leg....
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....r the learned Assessing Officer to complete the assessment in the hands of the assessee in his individual capacity, because, the very reasons recorded by the learned Assessing Officer can show that the escapement of income relates to late Smt. V. Rajyalakshmi and the notice under section 148 of the Act was issued to the assessee in his capacity of representative-assessee. For these reasons, learned CIT(A) allowed the appeal. 9. Revenue is, therefore, aggrieved and filed this appeal, stating that the assessment was made in the status of Legal Heir, but not in the status of individual of the assessee since the assessment order was passed in the name of Sri Vedula Venkata Ramana, L/R of late Smt. V. Rajyalakshmi. It is contended by the lear....
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....see in his hand in his individual capacity. The second limb of argument of the learned AR is that the sale deed referred to by the learned Assessing Officer in the assessment order clearly shows that there were three co-sharers in the alleged property that was sold. He further contended that the reasons recorded also clearly show that apart from the assessee, there was another legal heir to late Smt. V. Rajyalakshmi. Learned AR submitted that there is another sister, who is also a co-sharer. 11. In these circumstances, while placing reliance on the decision of the Hon'ble Madras High Court in the case of CIT vs. Muthukarupan (2007) 290 ITR 154, it was submitted that it would be travesty of justice, if the assessee, one of the co-owne....
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....tion 50C are applicable. It is important to note that the assessee has not filed the return of income for the assessment year 2009-10 disclosing the sale of immovable property. I therefore have reason to believe that the income chargeable to capital gains has escaped assessment for the assessment year 2009-2010. b) It is pertinent that the assessee Smt. V. Rajyalakshmi died five years ago and her two sons Sri V.Venkata Ramana and Sri V.Srinivas are legal heirs. Sri V. Venkata Ramana, assessee of this charge and one of the legal heirs, has not disclosed any Capital Gains as per the Return of Income filed for the Asst.Year 2009-10 on 29-09-2009. Incidentally on 18.03.2000,Sri V. Venkata Ramana received the entire sale consideration o....
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....showing the assessee as the Legal Representative of late Smt. V. Rajyalakshmi, but he considered the return of income filed with PAN-ABHPV1213E and took into consideration the professional income returned by the assessee. In these circumstances, we find it difficult to hold that the learned CIT(A) committed any error. 15. Apart from this, the sale deed clearly shows that there were three vendors under the same. Learned Assessing Officer did not make any enquiry about the other two persons. Further, the sale deed itself reads that the amount was deposited in the bank account of the assessee as a nominee of the vendors, but not as the Legal Representative of late Smt. V. Rajyalakshmi alone. Needless to say that nominee cannot appropriate t....