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2023 (3) TMI 402 - AT - Income TaxValidity of reopening of assessment u/s 147 - transaction of purchase of property - Period of limitation - HELD THAT:- We find no error or legal infirmity in the finding of the Ld. CIT(A) on the legal issue of validity of reopening of the assessment u/s 147 of the act. In the present case, purchase transactions of the-appellant were dated 18.02.2009 falling in AY 2009-10 and second transaction was dated 08.06.2009 falling in AY 2010-11. The period of limitation as per the provisions of the Income Tax Act for reopening assessment for the assessment year 2010-11 was to expire on 31/03/2017. The Assessing Officer has issued notice u/s 148 of the Action that date, therefore in respect of 2nd transaction dated 08/06/2009 the notice of reassessment was issued well within time. Thus, in our view, the reopening of the assessment in respect of purchase transaction dated 08/06/2009, the same was being within the period of limitation and hence rightly upheld as valid. Accordingly, the decision of the CIT(A) on this issue is sustained. Reassessment proceedings being unaccounted investment in purchase of land - Admittedly, the appellant has been granted relief by deleting the disputed quantum addition in respect of one transaction. However, the 2nd transaction has been confirmed. CIT (A) further observed that there is no bar in holding that more money exchanged hands which partakes character of payment though connected to transaction but not in respect of consideration. The appellant is obliged to tender explanation about source of this extra money which he has failed. There is no infirmity or perversity in the finding of the Ld. CIT(A) to the facts on record in sustaining the action of the AO in respect transaction dated 08/06/2009. Accordingly, the AO is directed to recalculate the amount of extra money/premium/on Money invested by the appellant in this transaction and accordingly reduce the addition made in the assessment.
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