TaxTMI 
TaxTMI 
2025 (11) TMI 558
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....ome on 31.03.2018 declaring income of Rs. 8,10,450/-. As per the computation of income, assessee has disclosed agricultural income of Rs. 4,75,624/-. The jurisdictional AO recorded the reason for issue of notice under section 148 of the Act and after taking due approval from the competent authority issued notice under section 148 of the Act on 31.03.2021. The reason for reopening assessment is as under: "2. During the year under consideration, the case was re-opened for the A.Y 2016-17 after recording reasons u/s. 147 of the Act after approval of competent authority. Notice u/s 148 of the Act was issued on 31/03/2021 by the Jurisdiction Assessing Officer (JAO) and duly served upon the assessee through e-mail. The assessee has filed....
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....m the assessee's side and notices were served to the assessee as per the verification unit. Thereafter on 02.03.2022 assessee filed detailed submissions and objected for reopening of the case. The same has been incorporated by the AO in his Order and the objection filed by the assessee was disposed off on 06.03.2022 and further notice under section 142(1) of the Act was issued on 14.03.2022. In pursuance to notice under section 142(1) of the Act which is quoted in the Assessment Order dated 14.03.2022, assessee did not furnish any reply. However, assessee has also furnished 7 sale deeds for 12 plots with the sale consideration value different in some plots and vary from the information uploaded by the DDIT (Inv), Bellary on the basis of whi....
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....as been submitted by the assessee is only sale deeds. The sale deeds are behind numbers list 21 deeds were excluded by the assessee whereas details of 12 sale deeds have been submitted. What has been submitted by the assessee is value of plots in the records of stamp value authority. Such value is for the purpose of determination of stamp duty payable. However, the law is settled for the immovable property transactions. Various judicial forums of the country have held that "on money' is intrinsic part of any immovable property. The AO noted that the rate depicted by the assessee is never said to be reasonable. On the other hand, the investigation report has subsequently rule the actual value of the property. Thus, the explanation submitted ....
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.... ii. The appellant was not having any document in his possession in support the reasons recorded for reopening of the assessment. iii. The reasons recorded were vaguely. iv. The JAO recorded that the appellant did not disclose any capital gain in the return of income filed whereas the return of income filed by the appellant clearly shows Long term Capital Gain of Rs. 7,29,499/- v. No proper enquiries were conducted before recording the reasons for reopening of the assessment by the JAO. vi. In the investigation report of the DDIT (Inv), Ballari, the rate of sale per plot was considered at Rs. 6,57,000/- which was considered by the JAO while reopening of the assessment whereas the plots were of different s....
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.....1 In view of the above discussion, impugned reopening of the assessment is unsustainable in law, so also, the assessment order passed by the AO is also not sustainable on facts and accordingly, both the proceedings i.e. the reopening of the assessment and assessment orders passed subsequently are quashed. 6. In the result, the appeal is allowed." 6. Aggrieved from the above Order, revenue filed appeal before the Tribunal. The learned DR strongly supported the Order of the AO and contested that in the income tax department there is investigation wing and has conducted enquiry regarding financial transactions which are not reported in the regular return filed by the assessee. Accordingly, the investigation wing observed that the ....
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...., the assets and plots developed by the demised person were transferred to the legal heirs as capital asset. Accordingly demised legal heirs are not in the business and assets received is a capital asset and the assessee has shown gain in the computation of income which has been shown in the income tax return filed by the assessee. The learned CIT(A) has produced the same in his Order at Page No.2 wherein it is clearly mentioned long term capital gain of Rs. 7,29,499/-. Accordingly, learned CIT(A) has examined the issue in detail. After examining the issue in detail, has rightly allowed appeal of the assessee. 8. Considering the submissions, the case of the assessee was reopened under section 147/148 of the Act on the basis of the inform....