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2018 (3) TMI 581 - AT - Income TaxBenefits of exemptions u/s 54F and 54 EC - Held that:- On a perusal of the entries in Andhra Bank Accounts cited by the learned Authorised Representative of the assessee, Smt. Veena Nambyar in this regard, we observe that certain amounts have been transferred from her account to that of her husband Shri Raghuram P Nambyar and others; but that the said transfers were for the purpose of construction of the residence, is not supported or corroborated by any bills to prove the assessee's claim that they were utilized for construction. No documentary evidence in this regard has been placed either before the authorities below or before us. This being the factual position i.e. that Smt. Veena Nambyar is not the owner of the said property, the authorities below have (i) rightly rejected her claims for exemption under Section 54F and 54EC and (ii) correctly brought the entire LTCG arising on sale of the said property in the hands of the assessee Shri Raghuram P Nambyar. In this factual matrix of the case, as discussed above, we are of the view that there is no merit in the claims put forth by the assessee in this regard and dismiss the same. Reopening of assessment - Held that:- At the stage of initiation of proceedings it is not necessary that escapement of income need be established, but there should be formation of belief by a reasonable person based on relevant material. In our view, the Assessing Officer has succinctly set out the facts of the case and recorded the reasons leading to the formation of belief that income of the assessee liable to tax had escaped assessment for Assessment Year 2009-10, with due application of mind, following the prescribed procedure as contemplated by the Act and in consonance with the decisions of various Hon'ble Courts. In this factual and legal matrix of the case as discussed above, we do not find any infirmity with the procedure adopted by the Assessing Officer in initiating proceedings under Section 147 of the Act. Interest u/s 234B and 234C - Held that:- Charging of interest is consequential and mandatory and the Assessing Officer has no discretion in the matter. This proposition has been upheld by the Hon'ble Apex Court in the case of Anjum Ghaswala & Others (2001 (10) TMI 4 - SUPREME Court) and we, therefore, uphold the action of the AO in charging the assessee the said interest. AO is however directed to recompute the interest chargeable under Section 234B and 234C of the Act while giving effect to this order.
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