TMI Blog2015 (8) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... sclose fully and truly all material facts necessary for his original assessment and or that after completion of original assessment any new information or materials had been received by him and which had not been disclosed by the assessee at the time of original assessment and since the proceedings u/s.147 had been initiated on the basis of same set of materials and papers which were available to the AO at the time of original assessment and only from the records of assessee with revenue filed at the time of original assessment u/s.143(3) of the Act and since it is not the case of the AO that assessee had not furnished all the details and particulars in this regard at the time of assessment and since the proceedings in this case u/s.147 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... initio void. 2. for that on the facts and circumstances of the case, the documentary evidence on record not having clearly established that the assessee had fully disclosed the material facts at the time of assessment u/s. 143(3), order of which was passed on 10.11.2005. 3. Brief facts are that assessee was one of the directors of Falakata Industries Ltd. She filed her return of income for A.Y.2003-04 on 30-01-2004 and original assessment was completed on 10-11-2015 u/s.143(3) of the Act accepting the claim of the assessee that no capital gain arises out of the transfer of the property in question, the facts are that the assessee entered into an agreement dated 07.04.1988 with Falakata Industries Ltd. wherein it was agreed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay the total consideration of ₹ 66,40,000/- in monthly instalments of ₹ 83,000/- per month spreading over 80 months. It was agreed that as and when the total sum of ₹ 66,40,000/- is received in full by the assessee from the company, she will transfer the land along with all constructions thereon in favour of the company. It was also agreed that in case the company fails to pay three consecutive instalments, the assessee shall be entitled to cancel the agreement dated 0l-04-2002 without any reference to the company and amount received by her shall be refundable along with interest to the company. Similarly, the company shall be deemed to have become the absolute owner of the land along with construction thereon, on whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act, the AO made necessary enquiries and in this connection a detailed reply was submitted before him vide letter dated18-l0-2005. From this letter dated 18-10-2005 it is clear that AO had obtained a detailed reply together with copies of agreements.The assessee s letter dated 10.10.2005 is being reproduced as under: Sub: Your notice u/s. 142(1) of I. T. Act, 1961 for AY 2003-04With reference to above and further to the discussions and our earlier submission of documents we submit the following: 1) Bank reconciliation statement for current deposit account maintained at Central bank of India Calcutta is given herein below: Balance as per books of accounts Rs.72,158.31 Add: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) On the balance 4 pieces of land, FIL and myself constructed residential house for the residence of the directors of FIL. Full details of this 4 pieces of lands are enclosed herewith for your verification. Your honour will appreciate that the said land is adequately shown in my balance sheer filed along with the return. iii) By virtue and agreement dt.07 -04-1988 with M/s. Falakata Industries Ltd I allowed the said company to construct a double storied residential building on the land owned by me. The salient features of the agreement are also described in the agreement dt.0l-04-02 with Mls. Falakata Industries Ltd. A copy of the said agreement dt.07 -04-1988 is also enclosed herewith. iv) As I was one 'of the Directors of FIL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siliguri, for which the assessee is getting payment of ₹ 83,000/- per month since 2002. Copies of the deed of land as per balance sheet also submitted. From the above details, it is clear that complete detail regarding this transaction was available before the AO at the time of framing of original assessment u/s. 143(3) of the act. Now question arises whether in such situation reopening u/s. 147 of the Act beyond four years is possible or not. 5. We find that at the time of original assessment, all the details and particulars in connection with the sale of such land has been made available to the AO and since all the material facts in this regard were available with the AO while completing original assessment u/s.143(3) on 10- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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