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2023 (6) TMI 118 - AT - Income TaxReopening of assessment u/s 147 - assessee did not file his return of income - undisclosed capital gain - On the basis of the information available in AIR that the assessee along with 17 other co-owners has sold immovable property and since the assessee has not filed any return of income, therefore, no income under the head “capital gains” has been offered for taxation - HELD THAT:- If there is reasonable information on the basis of which a reasonable person can form a requisite belief that income chargeable to tax has escaped assessment, then proceedings u/s 147 can be validly initiated - sufficiency or correctness of the material is not a thing to be considered at the stage of recording reasons. Therefore we find no infirmity in the initiation of proceedings u/s 147 in the facts of the present case. Accordingly, grounds raised in assessee’s appeal are dismissed. Year in which the transfer of immovable property has taken place - In the present case, it has not been disputed that the assessee has transferred the development rights in the plot of land to the builder/developer. possession of the land was also handed over to the builder/developer alongwith the development rights. Therefore, even though the Agreement for Sale was executed on 30/03/2010, the property was already transferred on 18/01/2008 at the time of execution of the Development Agreement, and thus, for all intent and purpose the land was transferred in the assessment year 2008-09. We are of the considered view that the aforesaid land was transferred by the assessee along with the other 17 co-owners to the builder/developer in the previous year relevant to the assessment year 2008-09 and therefore, capital gains, if any, thereon cannot be taxed in the year under consideration. As a result, ground no.3 raised in assessee’s appeal is allowed.
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