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2018 (2) TMI 191 - HC - Income TaxAssessment u/s 153A - Can the Assessing Officer rely on materials already available with him (much prior to the search) in a proceeding under Section 153A? - computation of capital gains - Held that:- The mere fact that without proceeding under Section 147 read with Sections 148 and 149, the Department proceeded under Section 153A would not by that alone absolve the assessee from making good the tax relating to the income which has escaped assessment. The mere fact that the provision under which the Department proceeded was not proper, would not vitiate the entire proceedings especially since there is no procedural requirement distinguishing a notice under Section 148 or one under Section 153A. The first transaction, transferring half of the right in the property, was made by execution of a sale deed on 01.07.1998 after which the purchaser Abdul Hameed was found to have withdrawn ₹ 50,50,000/-. Hence, there was clear evidence as to the total consideration received, being ₹ 1,01,00,000/- in the two transactions; establishing the information as disclosed from the copy of the consent letters received along with the Tax Evasion Petition. The first transaction took place in the financial year 1998-1999, in which the assessee admitted receipt of only ₹ 44,00,000/- and after the execution of the first sale deed, there was a withdrawal of ₹ 50,50,000/- from the purchaser's account. This obviously was for the second transaction, the sale deed of which was executed on 10.05.1999, at the commencement of the next financial year 1999-2000. The exact amount of income escaped from assessment is supported by ample evidence. We do not see any reason to interfere with the orders of the Tribunal. The questions of law are answered in favour of the Revenue and against the assessee. The appeal is rejected affirming the order of the Tribunal. The computation of capital gains shall be proceeded with by the Assessing Officer and finalised expeditiously; if not already done. The parties are left to suffer their respective costs.
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