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2016 (9) TMI 1037 - HC - Income TaxReopening of assessment - netting of interest for deduction under section 80P(2)(d) - Held that:- The petitioner had filed full details of such interest income along with the return itself along with the interest expenses. If the Assessing Officer was of the view that the same was not in order, he could have disallowed part of the claim. At any rate, this cannot be a ground for reopening the assessment beyond a period of four years since it cannot be stated that the petitioner had not disclosed true and full facts. Escapement of income as per the provisions of section 50C - Held that:- The contention of the petitioner that the Assessing Officer was aware about such difference in two valuations based on the letter dated 28.11.2007 cannot be accepted. The said letter was written not by the Assessing Officer but by the investigation wing of the department which was till then, on prima facie information available, was inquiring further in this respect. It was in this background the Assistant Director of Incometax (Inv), Surat, conveyed to the petitioner that the value of the property mentioned in the sale deed is lower than the value adopted by the stamp valuation authority. The petitioner was therefore, asked to explain whether capital gain was computed on the basis of section 50C of the Act. If yes, the petitioner would submit evidence, if no, the petitioner to show cause why adverse inference should not be drawn. This letter was received by the petitioner on 4.12.2007. On 6.12.2007, it appears that the purchaser of the land had in respect to a similar letter from investigation wing contended that the Government approved valuer had assessed rate of land at ₹ 275/per square meter at which the land was sold. It was further pointed out that stamp valuation authority had earlier adopted market value of ₹ 1.42 crores but after objection reduced it to ₹ 71.07 lacs which would show that no proper parameters had been adopted. As noted, the petitioner had also replied separately to the said authority under letter dated 2.1.2008. The stand of the petitioner in such reply was rather vague and general. The petitioner did not deny the higher valuation adopted by the stamp duty authority or application of section 50C of the Act but merely generally and vaguely opposed any proposal for action. . In reply to this, the petitioner again made similar averments without drawing any further light on why the petitioner had not disclosed such development or offered capital gain on the basis of such higher computation. In our opinion, the petitioner thus failed to discharge duty of true and full disclosure. On the first ground, therefore, the notice for reopening is valid.
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