Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (9) TMI 208 - ANDHRA PRADESH HIGH COURT

2016 (9) TMI 208 - ANDHRA PRADESH HIGH COURT - TMI - Reopening of assessment - Held that:- The respondents cannot shy away from the fact that there was a full and true disclosure of all material facts necessary for assessment. This case will not fall under the category of mere production of books of accounts and other records. This case very clearly falls under the category of true and full disclosure, upon which the first assessment order was passed on the opinion that the lands sold were agric .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tice dated 26-03-2014 issued under Section 148 of the Income Tax Act, 1961, for reopening the assessment for the year 2008-2009. 2. Heard Sri Y. Ratnakar, learned counsel for the petitioner and Sri Narasimha Sarma, learned senior standing counsel for the respondents. 3. The petitioner/assessee filed a return of income for the Assessment Year 2008-09 on 30-09-2008, admitting (i) a loss of ₹ 1,98,26,817/- and (ii) a profit on sale of land to the tune of ₹ 14,35,77,640/-. The assessment .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ribed form. 5. Since the said notice did not contain any reasons for reopening of assessment, the petitioner made a request on 25-04-2014. In response, the Assessing Officer issued a reply dated 14-07-2014 indicating that the profit on sale of land amounting to ₹ 14,35,77,640/-, related to land sold to a Real Estate Company for the construction of a Special Economic Zone and that therefore, the sale was not exempt as agricultural land in view of the decision of the Supreme Court in Sarifab .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion challenging the very reopening of assessment under the notice dated 26-04-2014. This Court, while ordering notice before admission in the writ petition on 05.02.2015, permitted the Assessing Officer to complete the reassessment, but not to give effect to the same, until further orders of this Court. 8. But It appears that by the time this court passed the said order, the assessing officer had already completed the assessment on 31-01-2015. 9. Therefore, despite the interim order passed by th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

v. Chabbil Agrawal (2014) 1 SCC 603 and Ess Ess Kay Engineering Company Limited v. Commissioner of Income Tax 247 ITR 818 that the writ petition deserves to be dismissed on the ground of availability of alternative remedy. But we do not think that the said contention can be upheld in the case on hand. The law is well settled that the refusal to entertain writ petitions on the ground of availability of alternative remedies, is a self-imposed restriction. This self-imposed restriction, as pointed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ions that are not available; and (5) where the statutory authority acted in total violation of the principles of natural justice. 11. In the case on hand, the petitioner challenges the very initiation of proceedings for reopening of assessment, as being without jurisdiction and also in complete defiance of the statutory prescriptions. Therefore, this is not a case, which can be thrown out on the ground of availability of alternative remedy. 12. Coming to the merits of the case, the reopening of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rt of the assessee, to make a return under Section 139; b) failure on the part of the assessee to make a return response to a notice under Section 142 (1) or under Section 148; and c) failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment. 13. It is neither the case of the Assessing Officer nor that of the learned senior Standing Counsel that the present case would fall under the first or the second contingency. The respondents attempt to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nce from which material evidence could, with due diligence, have been discovered by the Assessing Officer, will not necessarily amount to disclosure within the meaning of the proviso. 15. Therefore, the proviso as well as the Explanation 1 to Section 147 make it obligatory on the part of the assessee (1) to make a full disclosure; 2) to make a true disclosure and 3) to ensure that such true and full disclosure is of material facts necessary for the assessment. A clear signal is sent to the asses .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Supreme Court clarified in Commissioner of Income Tax vs. Kelvinator India Ltd. 2010 320 ITR 561, that though the power to reopen assessment, after the Direct Tax Laws (Amendment) Act, 1987 was much wider, Section 147 cannot be taken to confer arbitrary powers to reopen assessment on the basis of mere change of opinion. 17. The question of change of opinion would arise only if there had been a formation of opinion in the first instance. It is not necessary that upon mere production of material .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cessary materials and a true and full disclosure of materials necessary for assessment, the statute ensures two things viz., a) that an officer, who had once formed an opinion, does not seek to change it later; and b) that an officer, who, deliberately or by his negligence, omitted to form an opinion, despite being made aware of the material facts, do not take refuge latter under Section 147 to cover up his negligence. 19. A question may arise in the second category of cases as to whether the in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on of materials. 21. As pointed out by the Constitution Bench of the Supreme Court in Calcutta Discount Co. Ltd., v. Income Tax Officer and another 41 ITR 191, the duty of the assessee stops with a true and full disclosure and does not extend to assisting the Assessing Officer with the inferences that could be drawn from out of what was disclosed. 22. Explanation 1, as pointed out by the Supreme Court in Commissioner of Income Tax, Calcutta v. Burlop Dealers Limited 41 ITR 191 (SC), does not imp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ir reply on 9-11-2010. There was a specific question covering the sale of agricultural lands and its taxability. The reply submitted by the petitioner to these questions at Sl.Nos.4 and 5 of the letter dated 9.11.2010 were as follows: The details of total land holding of the company are enclosed. We have sold 28.13 acres of agricultural land during the financial year 2007-2008. Copies of the relevant sale deeds are enclosed along with working of computation of profit on sale of agricultural land .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s not taxable income. The assessee was also issued a letter calling for information and produce books of accounts, bank statements, vouchers/bills etc. The AR of the assessee, Sri Syed Mansoor, CA, appeared from time to time and produced books of accounts with relevant vouchers/bills etc. and the information with regard to land details etc. After examining the books of accounts and other details at length, the case was discussed with the AR of the assessee. However, upon verification of the bala .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version