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2021 (2) TMI 566 - HC - Income TaxReopening of assessment u/s 147 - Undisclosed purchase of land - validity of reasons to believe - reopening after period of four years - HELD THAT:- From statement of investment in the land / purchase of lands made in the F.Y. 2013-14 and the table furnished by the Assessing Officer in his reply dated 14.09.2020 (Annexure-9) containing the recorded reasons in terms of section 147, it is clear that the assessee had not made full disclosure of the purchase of lands made in the year 2012-13. Assessee failed to disclose that on 26.02.2013 he had purchased lands in the district of Seraikella-Kharsawan from certain persons named therein, as also pointed out by the Revenue. After the assessment was over, on cross verification from the report of the District Registrar, Seraikella-Kharsawan, it was revealed that the Company had actually purchased lands of ₹ 30.04 crores from 11 different persons on 26.02.2013. The balance sheet for the year ending 31.03.2013 revealed that the Company had incurred ₹ 18.39 crores more than the declared expenses on land which appear to have escaped assessment for the A.Y. 2013-14. This fact was discovered by the Assessing Officer on the basis of the report of District Registrar, Seraikella-Kharsawan after the assessment was complete and not on re-examining the materials and documents already on record filed by the assessee along with the return or subsequently brought on record during the assessment proceedings. This is the basis on which the Assessing Officer formed a reasonable belief that the assessee had failed to truly and fully disclose his income. As such, this income of the assessee had escaped assessment. Thus, the ingredients of first proviso to section 147 appear to be made out on the basis of materials on records. If that is so, the initiation of reassessment proceedings under section 148 beyond the limitation of four years, as prescribed under the first proviso to section 147 and also under section 149(1) (b) is not in breach of the statutory provisions. - Decided against assessee.
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