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2018 (3) TMI 1997 - HC - Income TaxReopening of assessment u/s 147 - transactions of sale and purchase of certain agriculture lands - land was purchased and petitioner had 50% share in the land and his investment was which was not reflected in the petitioner's books of account or profit and loss account, thus unexplained investment to be taxed u/s 69 - HELD THAT:- Revenue cannot get away from the fact that the entire transaction was scrutinized by the Assessing Officer from very same angle of possible applicability of section 69 of the Act. When the Assessing Officer called upon the petitioner to explain this aspect, the petitioner had conveyed that the land was actually purchased by the firm in which, he is a partner and this detail was reflected in the firm's accounts as work in progress in the balance sheet. Upon being satisfied by such an explanation, the Assessing Officer made no addition in the order of assessment. It is true that he neither gave any reason for this action nor even referred to this transaction in the order of assessment. This however would not be of any importance, as long as the Assessing Officer noticed the transaction, raised queries and elicited response from the assessee during the original assessment. Assessee had sold certain agriculture land at Village Kosmada at a declared sale consideration which was lesser than the stamp duty valuation, the difference was taxable in the hands of the petitioner as his capital gain in terms of section 50C - As seen that during the original assessment proceedings, Assessing Officer was acutely conscious of the fact that the petitioner had sold certain agriculture land situated in the village Kosmada at the sale consideration shown in the registered document was less than the valuation adopted by the Stamp Valuation Authority for registering the sale deed and that the possibility of application of section 50C of the Act would arise. He therefore, asked the petitioner to explain these aspects. The petitioner's explanation was that he had no reason. Any amount in addition to what was actually stated in the sale deed, he was not aware about the stamp valuation procedure and lastly, he contended that he would invoke the provisions of section 50C(2) of the Act. Under such provision, an assessee disputing the stamp valuation of any sale deed could call upon the Assessing Officer to make reference to the DVO to ascertain the value of the capital asset. Be that as it may, the Assessing Officer did not make any additions in the order of assessment. Thus, silently accepting the assessee's representation it was thereafter not open for him to rake up the same issue through the process of reopening of assessment. Decided in favour of assessee.
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