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2024 (1) TMI 353 - ITAT MUMBAIReopening of assessment u/s 147 - addition being LTCG on sale of flat - claim of exemption u/s 54 of the Act for the LTCG on sale of flat - HELD THAT:- In the present case, it is undisputed that the sale of immovable property and subsequent purchase of immovable property were not disclosed by the assessee in his original return of income physically filed on 03/11/2011. Therefore, we are of the considered view that the reassessment proceedings were validly initiated by the AO under section 147 of the Act on the basis of information received from the ITD system under the NMS module, which constitutes tangible material u/s 147 of the Act. Accordingly, reassessment proceedings initiated u/s 147 and issuance of notice u/s 148 of the Act are upheld. As a result, ground no. 1 raised in assessee’s appeal is dismissed. However, at the same time, it is also evident from the reasons recorded by the AO while reopening the assessment, that the assessee purchased immovable property valued at Rs. 1,46,88,500 and sold immovable property at Rs. 1,27,00,000, during the year under consideration. Thus, when such are the facts, we are of the considered view that the AO was also required to grant the benefit of section 54 of the Act to the assessee while computing the income under the head “capital gains”. However, as evident from the record, despite noting the aforesaid reasons for reopening the assessment, the AO merely computed the long-term capital gains and added the same to the total income of the assessee, without granting the benefit of section 54 of the Act as provided under the law. Therefore, in view of the facts and circumstances as noted above, we deem it appropriate to restore the computation of income under the head “capital gains” to the file of the AO for de novo adjudication as per law after verification of the claim of exemption under section 54 of the Act. The assessee is directed to furnish all the documents/information in support of his claim under section 54 of the Act. As a result, grounds no. 2 and 3 raised in assessee’s appeal are allowed for statistical purposes.
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