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2020 (5) TMI 525 - AT - Income TaxReopening of assessment u/s 147 - income on account of capital gain arising from transfer of the immovable properties has escaped assessment - deduction u/s 54F claimed - HELD THAT:- AO issued notice u/s 133(6) to the assessee for ascertaining the facts about the taxability of capital gain. In reply, the assessee has claimed that he has filed the return of income and shown this transaction but claimed deduction u/s 54F as well as Indexed Cost. The reply of the assessee is very brief and not with the details of the deduction u/s 54F. Further the assessee has not furnished any evidence during the said enquiry conducted by the AO prior to recording the reasons. Therefore, the assessee, despite the enquiry conducted by the AO, has not disclosed the facts regarding the investment made by him for purchase or construction of the new residential house. This fact indicates that the assessee has made this claim without any supporting evidence and even during reassessment proceedings the assessee could not produce the documentary evidence to the satisfaction of the AO and the claim of the assessee u/s 54F of the Act was rejected. Once the AO has brought on record the facts and reasons to form the belief that income is assessable to tax on account of capital gain then the quantum of the income finally computed is not a material aspect at the stage of initiation of proceedings u/s 147/148 of the Act. Therefore, the objection raised by the assessee regarding the correct amount of capital gain as recorded in the reasons cannot be a ground for quashing the proceedings u/s 147/148 of the Act when the AO has shown the relevance between the reasons recorded and the formation of belief on the subject matter and the source of income which has escaped assessment. Therefore, the decisions relied by the ld.AR of the assessee are not applicable in the facts of the present case. When the reasons are itself self-explanatory and speaking the link between the material and the formation of belief then the approving authority i.e. Pr. CIT is not required further to supplement the reasons to believe as recorded by the AO. Hence, in view of the facts and circumstances of the case, we do not find any error or illegality in the impugned order of the ld. CIT(A). - Decided against assessee. Disallowance of deduction u/s 54F - property which was claimed to be reconstructed/ renovated was not owned by the assessee - HELD THAT:- additional evidences which were sought to be filed by the ld.AR of the assessee, there is nothing to show that the assessee has invested the money in the construction of the house. Further, when the assessee has no right in the house then even if it is financed by the assessee the ownership of the property would not change. Accordingly, the additional evidences produced by the are not going to support the claim but only support the claim of ownership of the father of the assessee. The affidavit which has been sought to be filed by the assessee, could have been filed before the lower authorities. After a gap of about 12 years, the affidavit filed by the assessee cannot be accepted, being after though and self serving. Hence, in view of the facts and circumstances of the case, we do not find any error or illegality in the impugned order of the ld. CIT(A). Thus Ground of the assessee is dismissed.
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