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2010 (11) TMI 367 - HC - Income TaxCapital gain - Best judgment assessment - Penalty - It was also made clear that if the appellant failed to submit her objections/views before the said date, the assessment would be completed on the lines indicated in the said notice - It is not in controversy that based on a notice issued under section 148 of the Act, for an assessment to be made under section 147 of the Act, in the absence of any materials having been furnished, it would be open for the assessing authority to make a best judgment assessment as provided under section 144 of the Act - The question whether the expenses alleged to have been incurred by the appellant in order to get the property free from so-called legal entanglement and that the appellant was eligible to seek deduction of such expenditure for determining the tax liability is purely a question of law since the money was paid by the assessee-company, it would also constitute an expenditure wholly and exclusively in connection with the transfer. In the case of payment of Rs. 50,000, the same analogy would apply - Though the appellant failed to raise those issues before the Tribunal though it was raised in its reply dated December 9, 2006, submitted before the assessing authority - the appellant should not be deprived of a fair opportunity of hearing, inasmuch as the said issue is a legal issue and if the appellant is able to demonstrate before the assessing authority on the said issue by producing satisfactory materials, the appellant would be entitled to gain substantial benefits - Decided in the favour of the assessee by way of remand
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