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Amit Gupta Versus Assistant Commissioner of Income Tax

2015 (5) TMI 901 - ITAT DELHI

Reopening of assessment - denial of deduction u/s 54/54F in respect on new residential property bought against sale of commercial property as alleged by the Learned Assessing Officer - Held that:- It is clear that the ld. CIT(A) justified the reopening for only on this basis that the notice issued u/s 148 of the Act was within the time limit laid down u/s 149 of the Act and that the AO recorded the reason on the basis of information received from the Directorate of Investigation, Gurgaon, howeve .....

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that the ld. CIT(A) without considering this fact that those grounds raised were purely legal in nature and go to the root of the matter, dismissed the same by stating that there was no reasonable cause for adding the additional grounds of appeal at stage of Appellate Proceedings. In our opinion the ld. CIT(A) ought to have admitted the additional grounds and thereafter he should have decided the same by considering the submissions of the assessee. We, therefore, considering the totality of the .....

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A. T. Varkey JJ. For the Appellant : Sh. K. Sampath, Adv. For the Respondent : Sh. B. R. R. Kumar, Sr. DR ORDER Per N.K. Saini, A.M. This is an appeal by the assessee against the order dated 23.12.2013 of the ld. CIT(A), Faridabad. 2. Following grounds have been raised in this appeal:- 1. That the Learned Commissioner of Income Tax (Appeals), Faridabad has erred in concluding that the reopening of the assessment proceedings have been legal and not beyond the jurisdiction of the Learned Assessin .....

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e Learned Assessing Officer. 3. That it is accordingly prayed that the exemptions denied by the Learned Commissioner of Income Tax (Appeals) may kindly be deleted. 4. That the appellant craves leave to add or amend any ground of appeal. 3. The assessee also raised the following additional grounds: On the facts and in the circumstances of the case and in law the CIT(A) erred in rejecting the following two additional grounds of appeal which were sought to be moved before him: 1. The having regard .....

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additional grounds were already included in original ground no. 2 but now has been elaborated and also requested to admit the additional grounds. The ld. DR although opposed the admission of additional ground but could not controvert this contention of the ld. Counsel for the assessee that the additional grounds are purely legal in nature. It is well settled that the legal ground can be raised any time as per the ratio laid down by the Hon ble Supreme Court in the case of NTPC Ltd. Vs CIT repor .....

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l assets sold was an industrial building and not a residential house, as such deduction claimed u/s 54 of the Act was not allowable. Thereafter the AO issued notice u/s 148 of the Act on 18.11.2011 after recording the reasons and assessed the income u/s 147 of the Act at ₹ 16,09,94,025/- by making an addition of ₹ 4,83,09,106/-. The AO also did not allow the deduction u/s 54 of the Act. 6. Being aggrieved the assessee carried the matter to the ld. CIT(A) and challenged the reopening .....

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of the case along with the appellant s rationale for admission of additional grounds of appeal. The admission of additional grounds of appeal is dealt in Section 250(5) of the Income Tax Act, which is reproduced hereunder: The (Commissioner (Appeals)) may, at the hearing of an appeal, allow the appellant to go into any ground of appeal not specified in the grounds of appeal, if the (Commissioner (Appeals)) is satisfied that the omission of that ground from the form of appeal was not willful or u .....

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these case laws, it is evident that there are significant differences between the case in question and the cases relied upon by the appellant. For instance, in the case of NTPC Ltd. Vs CIT 229 ITR 383 (Supreme Court), their lordships dealt with the power of ITAT in admitting additional grounds of appeal whereas in this case the issue is the circumstances under which the CIT(A) can admit additional grounds. It is worthwhile mentioning here that in Goetze India Ltd. Vs CIT (supra), the Hon ble Ape .....

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nt that the interest earned before setting up of business was not taxable as income. On learning about the said legal position, the assessee sought to include the above ground in the ground of appeal. Hence, the reason for admitting additional ground was that the appellant got some new information which he was not aware of at the time of filing the appeal. In the present case, however, no new information came in the possession of the appellant which could lead to the conclusion that it would be .....

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the Tribunal, the additional grounds could not be admitted. Hence, after a careful consideration of the facts of the case, the submissions of the learned counsel of the appellant and various judicial pronouncements, the additional ground raised by the appellant is not admitted. 2.16 Having rejected the additional grounds submitted by the appellant during the course of appellate proceedings, let us examine various grounds of appeal filed at the time of filing of appeal. 8. The ld. CIT(A) also did .....

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l grounds raised by the assessee. He further submitted that the ld. CIT(A) also rejected the grounds relating to initiation of proceedings u/s 147 of the Act by passing a non-speaking order. Our attention was drawn towards para 4 of the impugned order. 10. In his rival submissions the ld. DR strongly supported the order of the ld. CIT(A). 11. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case, it is noticed .....

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the assessment records together with a careful consideration of the provisions of law, I do not find any force in appellant s contention. The AO on the basis of information received from the Directorate of Investigation, Gurgaon and after due application of mind recorded reasons for re-opening the case u/s 147 of the Income Tax Act and accordingly issued a notice u/s 148 of the Income Tax Act on 18.11.2011. Since this case pertains to assessment year 2009-10 and the notice u/s 148 was issued on .....

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