TaxTMI 
TaxTMI 
2024 (9) TMI 968
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....ard learned Senior Advocate Mr. Tushar Hemani with learned advocate Ms. Vaibhavi Parikh for the petitioner and learned Senior Standing Counsel Mr. Nikunt Raval for learned advocate Ms. Kalpana Raval for the respondents. 2. Rule returnable forthwith. Learned advocate Mr. Nikunt Raval waives service of notice of Rule on behalf of the respondents. 3. Since the issue involved is in narrow compass, with consent of learned advocates appearing for the respective parties, the matter is taken up for final hearing. 4. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 28.3.2021 issued under Section 148 of the Income-Tax Act, 1961 (for short 'the Act') for Assessment Year 2016-17. ....
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....e sale deed has treated the said transactions of sale and purchase as a trade and business and disallowed the exemption claimed under section 54B. It was also mentioned in the assessment order that the land sold was not a capital asset rather stock in trade for which the Long Term Capital Gain is disallowed and the sale proceed would be treated as business income. 3. Analysis of information collected /received: As per data available in ITD/ITBA, the profile of the assessee is as under: Status of the assessee is Individual and filed in form ITR-3/4 and his source of income was Business, Long term capital gains and no agricultural income. For the last 3 years the assessee has shown his nature of business and source ....
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....ncome chargeable to tax amounting to Rs. 3,04,85,097/- has escaped assessment/lower rate in the hand of assessee for the year under consideration. As per section 2(13) of the Act, Business includes any trade, commerce or manufactures or any adventures or concern in nature of trade, commerce or manufacture. As per section 63AA of Bombay Land Revenue Code when agriculture land is sold or purchased for bona fide industrial purpose the status of land will consider as N.A land. The assessee involves in purchasing lands and selling them to various persons as series of transactions, it would be chargeable to tax under the head profit and gain from business/profession." 6. Learned Senior Advocate Mr. Tushar Hemani for ....
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....g them to various persons as series of transactions, which would be chargeable to tax under the head profit and gain from business / profession and not as LTCG. It was submitted that during the year under consideration, the petitioner sold the land by sale deed on 23.4.2008 as he has purchased the land by sale deed dated 23.4.2008 for total consideration of Rs. 4,50,14,400/- and out of the sale transaction, the petitioner was having the share of Rs. 3,09,47,400/-. It was submitted that the Assessing Officer was of the opinion that such transactions were in nature of trade and ought to have been treated as business income instead of LTCG. It was submitted that such error was pointed out by the audit party and it is permissible for the Assess....
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....sons recorded pertain to sale of the land during the year under consideration which was subjected to scrutiny in the regular assessment. Therefore, as per the second proviso to Section 147 of the Act, the Assessing Officer would not have any jurisdiction to reopen the assessment when there is no failure on part of the assessee to disclose fully and truly all the material facts relevant for the assessment. Moreover, the reasons recorded by the respondent - Assessing Officer are also not correct as the assessee has never filed the return in Form ITR-3 or Form ITR-4, as stated in the reasons recorded by treating the income so as to treat the sale consideration received as a business income. The petitioner - assessee has filed the return of inc....