Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 190 - HC - Income TaxReopening of assessment - It was contended that, though the return was filed in pursuance of notice u/s 148 dated 31.3.2012, no assessment was made - Therefore, fresh notice dated 15.3.2016 on the premise of non-filing of return is incorrect - Long Term capital gain on sale of land - estimation of fair market value of the land - Held that:- The reasons recorded by the Assessing Officer proceeded on the basis that Takhiben had filed no return which was factually incorrect. He, therefore, proceeded on the entirely wrong premise and his reasons therefore, lacked validity. AO,in the very first paragraph of the reasons, has referred to the fair market value of the plot of land which was, according to the department's valuer, was estimated at ₹ 2,41,800/- as against ₹ 94,55,160/- estimated by the assessee. The reasons recorded do not refer to it as on which the estimation of fair market value of the land is taken. If his reference was, as would be presumed on the basis of later portion of his recording of reasons, to the crucial date of 01.04.1981 he has not said so in the reasons. More importantly, if the fair market value, according to him was ₹ 2,41,800/- for the plot of land while computing the possible value of the income having escaped assessment, he gives no benefit of indexation of such cost of acquisition from 01.04.1981 till the date of sale of land. Assessing Officer exhibited absolute non-application of mind to the facts and materials on record. The notice for reopening of assessment was, therefore, based on reasons which were the product of such non-application of mind. Notice must therefore be quashed. - Decided in favour of assessee.
|