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2019 (1) TMI 955 - HC - Income TaxValidity of reopening of assessment - income chargeable to tax has escaped assessment - petitioner had sold the immovable property during financial year 2010-11 but had not shown the capital gain arising out of such transaction in the return of income - assessment reopened beyond a period of four years from the end of relevant assessment year - Held that:- A perusal of the return of income filed by the petitioner shows that he has duly shown the long term capital gain arising out of the sale of property in question and has also given a detailed computation of income in the statement of Long Term Capital Gain. AO appears to have proceeded on a factually incorrect premise to the effect that the petitioner had not offered the long term capital gain for taxation. It is evident that the consideration received on account of sale of the immovable property as reflected in the reasons recorded is also incorrect inasmuch as the correct figure is ₹ 6,48,000/- and not ₹ 6,07,000/-. Besides, by the letter of verification dated 21.03.2018, the Assessing Officer had called upon the petitioner to furnish the details of sale of the property in question, in response to which, the petitioner had given a reply dated 26.03.2018 pointing out that transaction of sale building in Rang Mahaal which has been mentioned in the letter dated 21.03.2018 and the capital gain emerging therefrom, has been included in the income. The petitioner had also enclosed copies of the computation of income as well as the sale deed of the property in question. Despite the aforesaid position, in the reasons recorded, the Assessing Officer has stated that the assessee has not furnished any details in this regard despite letter having been issued to him. AOr has not applied his mind to the facts of the case and that the formation of belief on the part of the Assessing Officer that income chargeable to tax has escaped assessment is also based on an incorrect premise that the petitioner had not offered the capital gain arising from the sale of immoveable property in the return of income In this case, the assessment is sought to be reopened beyond a period of four years from the end of relevant assessment year. Therefore, unless there is any failure on the part of the petitioner to disclose fully and truly all material facts necessary for his assessment for the year under consideration, the assumption of jurisdiction under section 147 of the Act on the part of the Assessing Officer is without any authority of law. - Decided in favour of assessee.
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