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2023 (7) TMI 380 - HC - Income TaxReopening of assessment u/s 147 - relevant material on which a reasonable person could have formed a requisite belief - petitioner has not shown capital gain on sale of the property in question in the return of income - HELD THAT:- Validity of opening of the assessment shall have to be determined with reference to the reasons recorded for reopening of the assessment. Power to reopen a complete assessment u/s 147 has been given to the AO if he has reason to believe that any income chargeable to tax has escaped assessment for any assessment year. In the present case petitioner has not shown capital gain on sale of the property in question in the return of income and the officer has reason to believe that the income has escaped assessment at the hands of the petitioner for the year under consideration. Petitioner has submitted objections/ reply, wherein it has been specifically pointed out that he had already disclosed the receipt by way of sale consideration from the transaction in question and has bifurcated the said amount under the head of Building (Depreciable Assets) and under the head of Land (Other Assets) towards the sale consideration, which have been shown. Petitioner has also paid STCG and LTCG - Therefore, it cannot be said that the income chargeable to tax has escaped assessment in the hands of the assessee. Thus looking to the aforesaid facts of the present case, we are inclined to entertain the present petition. Decided in favour of assessee.
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