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2021 (7) TMI 108 - AT - Income TaxValidity of reopening of assessment - assessee is admittedly a company engaged in the real estate business - un-explained investment in purchase of land and profit on sale of land - CIT(A) has affirmed the same - HELD THAT:- As noticed from a perusal of the case file that the Forest Department of the Government of Andhra Pradesh through the DFO, Hyderabad had cancelled the assessee’s sale deed itself on 20-11-2008 for the reason that the land in question was government/reserve forest land. This in our considered opinion, sufficiently takes care of the AO’s sole re-opening reason alleging escapement of income with the assessee’s taxable income derived from sale of properties during FY.2008-09. No other sale deed other than that cancelled has been executed at the assessee’s behest. The Assessing Officer’s corresponding sole re-opening reason does not survive anymore therefore. In view of all the preceding facts that the assessee could not have been held to have derived any taxable income once the sale deed itself stood annulled by the state Government. Hon'ble apex court’s landmark decision in Chainrup Sampatram [1953 (10) TMI 2 - SUPREME COURT] held long back that “while anticipated loss is thus taken into account, anticipated profit is not brought into the account, as no prudent trader would care to show increased profits before its realisation” as per the conservative spectrum of accounting. We therefore hold that the Assessing Officer’s re-opening reasoning itself does not hold ground in light of all these facts and circumstances. We find no substance in the Revenue’s stand as per tribunal’s co-ordinate bench’s decision in Joginder Sing [2015 (6) TMI 1217 - ITAT AMRITSAR] - We adopt the foregoing detailed reasoning mutatismutandis to accept assessee’s former substantive grievance challenging validity of the impugned re-opening. The same stands quashed.
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