TaxTMI 
TaxTMI 
2024 (11) TMI 1014
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....essee sufficient opportunity of hearing. Thus, the assessment order was restored back to the file of the learned Assessing Officer. 02. The assessee is aggrieved with that appellate order and has preferred following grounds of appeal. "The appellant objects to the order dated 6 March 2024 (date of service of order dated 6 March 2024) passed under Section 263 of the Income Tax Act by the CIT (Exemptions), Mumbai, Income Tax Department for the aforesaid assessment year on the following among other grounds. 1. The learned CIT(Exemptions), Mumbai have not considered the fact that the issue regarding applicability of provisions of Section 50C was already caused by the learned AO during AY 2017-18 and closed after justification provided by the appellant during the course of assessment. The contention of the learned CIT(Exemptions), Mumbai in stating that the order passed by the learned AO was without verification of facts is not correct. 2. The learned CIT(Exemptions), Mumbai have not considered the claim of the appellant that the provisions of Section 50C are not applicable in case of charitable trusts whose income is computed under Section 11.12 and 13 of ....
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....erty of land situated at CTS No. H/395 admeasuring 51 sq. mtrs. or CTS No. H/397 admeasuring 163.9 sq. mtrs. and H/398 admeasuring 4046.90 sq. mtrs. collectively admeasuring 4325.30 sq.mtrs in village Bandra, Santacruz (West) Mumbai. Thesale of land and development right is at Rs. 52,52,52,525/-. 06. The assessee submitted that income derived from property held under trust is exempt,which also includes capital gains. The learned Assessing Officer was of the view that the assessee hasnot disclosed the capital gain in his return of income and, therefore, as per the registered sale deed, the addition of Rs. 52,52,52,525/- was made to the total income of the assessee by passing an assessment order under Section. 143(3) read with section 144B of the Act on 26.05.2021. 07. Subsequently, the record of the assessee was examined by the learned CIT(E) and noted that the assessee has sold property at Rs. 52,52,52,525/- on 17.05.2017 having a stamp duty value of Rs. 82,31,00,500/-. The net capital gain of Rs. 25,45,91,210/- has been invested against the above capital gain. As the assessee has not furnished the details in the income tax return the cost of purchase was not available. It wa....
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....ion 50C of the Act. Assessing Officer was further directed to give sufficient opportunity of hearing. Accordingly, the order u/s. 263 was passed on 06.03.2024. 010. The assessee aggrieved with the same has preferred this appeal stating that. i. There is no error in the order of the learned Assessing Officer because the provision of Section 50C of the Act does not apply in the case of the Trust. He referred to the provisions of Section 11(1A) and submitted that net consideration arising out of transfer of asset shall be deemed to have been applied for charitable purposes and that section does not prescribe how such capital gain is to be calculated. ii. He further submitted that Section 48 and Section 50C of the Act does not apply in case of a charitable trust and accordingly the order under Section. 263 of the Act is bad in law. iii. The learned Authorized Representative also made that such revision under Section. 263 of the Act is bad inlaw for several reasons. iv. The learned Authorized Representative referred to factual paper book containing 199 pages wherein the assessment proceedings communication and reply thereto under Section. 263 of th....
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.... iv. Assessee is assessed by the Assessing Officer u/s. 143(3) of the Act as per order dated 16.12.2019. Accepting the return of income and computation of the capital gain determining total taxable income at Rs. NIL. v. Therefore, it is apparent that assessee has offered capital gain in A.Y. 2017-18, which is accepted by the learned Assessing Officer by passing an assessment order on scrutiny accepting the claim of the assessee. Such assessment order is placed at page 102 of the paper book and computation is at Page 108 of the paper book. vi. Subsequently, the return of income for A.Y. 2018-19 was filed by the assessee declaring income at Rs. NIL. vii. This return of income was picked up for scrutiny for reason that assessee has sold immovable property by way of a registration of sale deed on 17.05.2017 (relevant to A.Y. 2018-19), which has the stamp duty value of Rs. 82,31,00, 500/-. The show cause notice was issued to the assessee and thereafter the learned Assessing Officer once again the determined the total income of the assessee for A.Y. 2018-19 at Rs. 52,52,52,525/-. viii. As the stamp duty value of the above property is found to be of R....