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2019 (1) TMI 1345 - HC - Income TaxReopening of assessment - reopening beyond the period of four years - addition under capital gains - rectification application as Amount of capital gains wrongly considered - Held that:- The assessee had furnished the necessarily details before the Assessing Officer of the said amount having been shown in Profit & Loss A/c but not offering it to tax. If during the original assessment proceedings, the AO desired to inquire further into such claim of the assessee, nothing prevented him from doing so. At any rate, he cannot do so in the assessment proceedings which are sought to be commenced beyond the period of four years from the end of relevant assessment year. Short term capital gain - gain accrued on account of non-STT paid venture capital fund - Held that:- Addition suffers from factual error and non application of mind on his part. In the return itself, the assessee had showed short term capital gain of ₹ 3.79 crores and further gain of ₹ 89.67 lacks total of which came to ₹ 4.68 crores which was duly offered to tax. AO had in the order of assessment actually erroneously taxed a sum of ₹ 44.68 crores which was clearly an error. The assessee brought this error to the notice of the Assessing Officer by filing an application for rectification. AO had made contradictory statements. In the first part, he has recorded that the assessee had offered such sum to tax on short term capital gain. In the later part, he contradicts himself by saying that the assessee had not offered it to tax. AO now cannot contend that this issue is debatable or is a factual aspect. The material on record would clearly suggest that on this ground, he had proceeded on erroneous footing. AO has proceeded solely on the basis of material already on record clearly debarring his jurisdiction for issuing notice of reassessment beyond the period of four years from the end of relevant assessment year. In that view of the matter, it is not necessary for us to decide the contention of the assessee's counsel that such income was not taxable at all. In the result, impugned notice is quashed. - Decided in favour of assessee.
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