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2015 (12) TMI 1173 - ITAT CHENNAI

2015 (12) TMI 1173 - ITAT CHENNAI - TMI - Reopening of assessment - negligence on the part of the assessee in furnishing necessary particulars for completing the assessment in regard to capital introduced - Held that:- The detailed questionnaire issued by the Assessing Officer to the assessee, shows that the Assessing Officer called for details with regard to capital introduced to the extent of ₹ 6,50,000/- and the advance receipt to the extent of ₹ 96,75,000/- for sale of the land. .....

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letter is available on the files of the Department. The assessment proceeding was completed originally on 23.10.2009. The assessee filed the letter on 21.10.2009. Therefore, it is obvious that the details with regard to advance receipt of ₹ 96,75,000/- and the capital to the extent of ₹ 6,50,000/- were very much available on the file of the Assessing Officer. In other words, the assessee has furnished the details with regard to the capital said to be introduced by the assessee to th .....

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was filed before the Assessing Officer. The letter dated 21.10.2009 is very clear and the assessee has explained before the Assessing Officer with regard to so-called capital of ₹ 6,50,000/- and receipt of ₹ 96,75,000/-. Thus there was no negligence on the part of the assessee in furnishing the required details for completing the assessment. Thus reopening of the assessment beyond four years period from the end of the relevant assessment year is not justified. - Decided in favour of .....

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ned the assessment beyond the period of four years even though there was no negligence on the part of the assessee in furnishing the particulars for completing the assessment. According to the Ld. representative, the assessee filed the return of income for the assessment year 2006-07 on 31.03.2006 admitting a total income of ₹ 3,94,460/- and agricultural income of ₹ 75,000/-. The assessment order was passed under Section 143(3) of the Income-tax Act, 1961 (in short 'the Act') .....

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ailable at page 7 of the paperbook. The Assessing Officer called for details during the course of assessment proceedings by way of a questionnaire, a copy of which is available at page 8 of the paper-book. Vide question No.11, the Assessing Officer called for the details with regard to ₹ 6,50,000/-, which was introduced as capital and the source therein and vide question No.14, the Assessing Officer called for details with regard to ₹ 96,75,000/-, which was received as advance for sa .....

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of business accounts in the previous books of account. With regard to advance of ₹ 96,75,000/-, the Ld. representative submitted that the assessee explained in a letter dated 21.10.2009 that it is an advance received for sale of land at Chinnasalem, which was shown in the balance sheet as land account 4.64 acres, for which a copy of the advance receipt was also filed before the Assessing Officer. Hence the credit of ₹ 6,50,000/- and the advance receipt of ₹ 96,75,000/- were exp .....

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tal Representative, submitted that admittedly the assessment was completed under Section 143(3) of the Act on 23.10.2009. Subsequently, it had come to the notice of the Assessing Officer that the assessee received a sum of ₹ 96,75,000/- on sale of the land and there was also cash credit to the extent of ₹ 6,50,000/- in the capital account. Therefore, the Assessing Officer reopened the assessment by issuing a notice under Section 148 of the Act on 28.03.2013. According to the Ld. D.R. .....

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e personal capital account as on 31.03.2006 submitted by the assessee before the Department was a questionable one. Therefore, the CIT(Appeals) has come to a conclusion that there was negligence on the part of the assessee to disclose fully and truly all the material facts for completing the assessment. Therefore, the CIT(Appeals) has rightly confirmed the reopening of the assessment. On a query from the Bench whether a copy of the letter written by the assessee on 21.10.2009, which is available .....

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nsideration is 2006-07. The four years period expired on 31.03.2010. Admittedly, the notice for reopening the assessment under Section 148 was issued on 28.03.2013 which is beyond the period of four years. 6. We have carefully gone through the provisions of Section 147 of the Act. The proviso to Section 147 clearly says that the assessment completed under Section 143(3) of the Act can be reopened after expiry of four years from the end of the relevant assessment year provided there was negligenc .....

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particulars for completing the assessment. The detailed questionnaire issued by the Assessing Officer to the assessee, a copy of which is available at page 8 of the paper-book, shows that the Assessing Officer called for details with regard to capital introduced to the extent of ₹ 6,50,000/- and the advance receipt to the extent of ₹ 96,75,000/- for sale of the land. The assessee filed reply on 15.10.2009 as well as on 21.10.2009. The CIT(Appeals), by referring to the letter of the .....

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