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2022 (5) TMI 955 - HC - Income TaxReopening of assessment u/s 147 - information received from ITO [I & CI] - II, Pune - capital gain on sale of land - applicability of Section 50C - HELD THAT:- Different parcels of lands were purchased by the said Director as an Agriculturist and thereafter sold/transferred to Zuari Cements Limited. It is not clear that how the funds of the petitioner could have been used to finance the purchase by its Director. The sale is also by the said Director in his individual capacity as an Agriculturist on 30.07.2011 to Zuari Cements Limited - income from the land development cost has been shown as Rs.7,08,39,862/- during the previous year. Further, a sum of Rs.2,98,97,357/- has been shown as expenses incurred towards land development charges. Further, the land sold during the relevant year was only for Rs.97,37,500/-. There is no clarity on this aspect. The guideline value of the property sold during the period in dispute was Rs.3,21,61,000/-. Therefore, Section 50C of the Income Tax Act was invoked, as if the land was a capital asset of the petitioner company. The Department wanted to include an amount of Rs.2,24,23,500/- [Rs.3,21,61,000 – Rs.97,37,500] as income having escaped assessment during 2013 to 2014, it is however not clear which the entire parcel of land was sold or only an extent of land was sold during the previous year for Assessment Year 2013-2014. It is also not clear how the land can be treated as a capital asset of the petitioner company when the land was neither purchased nor sold by the petitioner Company. These aspects are not forthcoming clearly either in the reply of the petitioner or in the orders passed by the respondent earlier on 22.11.2018 which was earlier quashed by an order dated 12.12.2018 or in the impugned orders dated 17.12.2018 disposing objection of the petitioner against reopening of the assessment under Section 148 of the Income Tax Act, 1961 and the consequential assessment order passed on 20.12.2018 impugned in this writ petition. Thus while upholding the impugned order overruling the objection against re-opening the assessment, we are inclined to set aside the consequential assessment order dated 20.12.2018, passed by the first respondent and remit the case back to the first respondent to pass a de novo orders on merits
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