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2017 (4) TMI 1151 - HC - Income TaxReopening of assessment - unexplained source of income for purchasing the property in question - Held that:- It is required to be noted that in the original assessment the return was processed under section 143(1) of the Act and there was no detailed scrutiny to the return filed by the assessee. However, subsequently, on the basis of the returned filed by one Mr.Bhavin Patel for A.Y. 2014-15 and the statement of said Mr.Bhavin Patel, from whom the petitioner assessee and one another co-owner has purchased the property in cash total amounting to ₹ 5,29,76,600/- and considering the fact that in the earlier assessment years, the assessee had shown cash on hand a very meager amount i.e. the assessee had shown cash in hand in return of income for A.Y. 2012-13 ₹ 0/- and therefore, the A.O. had noted that the Company had no cash balance in the last year for the purchase of property in cash as well as the Company cannot take unsecured loan or advance from customer in cash. Therefore, the A.O. has reopened the assessment for A.Y. 2014-15 in which the petitioner has purchased the property by paying ₹ 2,64,88,300/- in cash. Under the circumstances, it cannot be said that there was no tangible material with the A.O. to form an opinion that income chargeable to tax has escaped assessment for the A.Y. 2014-15 within the meaning of section 147 of the Act. - Decided against assessee
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