Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 19 - AT - Income TaxReopening of assessment u/s 147 - Validity of sanction given u/s 151 - sale proceeds of plot of land has escaped income - incriminating documents were found and seized from third party[Shri Madan Mohan Gupta] - reasons to believe - as argued sanctioning authority Pr. CIT-III has granted sanction in a mechanical manner without ascertaining whether any enquiry was conducted by AO before reaching to the conclusion that there was any escapement of income - HELD THAT:- The reasons recorded by the Assessing Officer in reopening the case of the assessee are identical to the case of Shri Navrattan Kothari [2017 (12) TMI 860 - ITAT JAIPUR] wherein under identical set of facts the entire reassessment proceedings were quashed by the Tribunal. AO has proceeded in the case of assessee on the premises that the assessee has sold the plot of land in question by receiving money over and above the consideration mentioned in the sale deed, as found recorded in the seized material, which was explained by Shri Madan Mohan Gupta. However, no tangible material is placed on record to support the action of the AO warranting reopening of the assessee’s case. AO did not rebut the appellant’s contention that nothing over and above the amount recorded in the registered sale deeds was received by bringing necessary details. The unsubstantiated material found in the diary in possession of Shri Madan Mohan Gupta cannot be considered in the hands of the assessee as a conclusive evidence so as to reopen the assessment and make additions towards long term capital gain in sale of the plot of land. Undisputedly, no other material suggesting receipt of higher amounts was recovered during the search. It is trite law that burden is on the revenue to prove that the price had been under stated and no addition is possible without any inquiry. In this case, there is no cogent material to support the reopening of the assessment within the meaning of section 147 and that the appellant has actually received higher amount than that recorded in the registered sale deed and the AO did not conduct any inquiry to bring some material to corroborate the notings found in the diary allegedly contained dealings in respect of certain properties sold by the assessee, except relying on the statement of Shri Madan Mohan Gupta. Thus validity of the reopening of the case of assessee quashed - Decided in favour of assessee.
|