TaxTMI 
TaxTMI 
2025 (7) TMI 1696
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....un K. Patel for the respondent. 2. Having regard to the controversy involved which is in a narrow compass, with the consent of the learned advocates for the respective parties, the matter is taken up for hearing. 3. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Varun Patel waives service of notice of rule on behalf of the respondent. 4. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 30.03.2021 issued under section 148 of the Income Tax Act, 1961 (For short "the Act") for Assessment Year 2015-2016. 5. Brief facts of the case are that the petitioner is a builder and is earning income by selling units in various projects developed by the petitioner. 6. The p....
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.... the amount of Rs. 40,00,000/- for the year under consideration. On the contrary, the petitioner has sold the property of Rs. 40,00,000/- which is already offered to tax by the petitioner. It was submitted that the petitioner is engaged in the business of construction and the petitioner is following the Project Completion Method and offering the income received from the buyers during the period of completion of construction of project. 15. It was submitted that the respondent Assessing Officer has therefore, issued the impugned notice for reopening on the basis of information which is contrary to the facts on record. It was submitted that the petitioner has disclosed all the facts in the return of income and without considering the records....
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....on, it is seen that that assessee has made investment in purchase of - property for an amount of Rs. 40,00,000/- for the FY 2014-15 relevant to AY 2015-16. On verification of ROI, it is seen that the assessee has not disclosed such property in the ROI filed. The amount of Rs. 40,00,000/- utilized for the purchase of property is deemed to be income from undisclosed sources and same is required to be treated as unexplained investment and required to be taxed. In view of the above, there is an escapement of income by not disclosing all financial transactions as required u/s. 139 of the Act. Failure on the part of the assessee to disclose fully and truly all the material facts necessary for the assessment, the income of the assessee has escaped....