TMI Blog2021 (8) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... ch has escaped assessment - HELD THAT:- The case of the assessee does not fall in any of the clauses of section 149(1) of the Income Tax Act then the decisions relied upon the learned AR of the assessee are not applicable. Accordingly, when all the primary facts are available with the Assessing Officer, the objection raised by the assessee against the validity of notice under section 148 is without any merit or substance, the same is rejected. Addition applying the provisions of section 50C - Assessee claimed that the sale consideration received by the assessee as stated in the sale deed is the actual fair market price of the property in question - HELD THAT:- Despite objection raised by the assessee, the Assessing Officer did not proceed to determine the fair market value of the property in question as provided under section 50C(2) - Once the assessee has raised the objection against the adoption of deemed full value consideration in terms of section 50C of the Income Tax Act, the Assessing Officer is duty bound to refer the matter to the DDO for determination of the fair market value of the property in terms of section 50C(2) of the Income Tax Act. Since, the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before hearing of appeal. 2. Ground no. 1 is regarding the validity of reassessment framed by the Assessing Officer under section 143(3) read with section 147 of the Income Tax Act. The learned AR of the assessee has submitted that the Assessing Officer has issued notice under section 143(2) on 29.06.2010 which is beyond the limitation and therefore the re-assessment framed by the Assessing Officer is invalid and liable to be set aside. 3. On the other hand, learned DR has pointed out that the Assessing Officer has issued notice under section 148 on 7.1.2010 and assessee has not filed any return of income in response to notice under section 148. Therefore, the notice under section 143(2) was not required to be issued when the assessee has not filed any return of income. Even otherwise the notice issued under section 143(2) Dt. 29.06.2010 is well within the period of limitation as the notice under section 148 was issued on 7.1.2010. In rejoinder, the learned AR has submitted that once the assessee has not filed any return of income in response to notice under section 148 then notice issued by the Assessing Officer under section 143(2) would be considered in respect of the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er (supra) has held that the so called reasons are no reasons in the eye of law and proceedings are initiated for verification based on pure conjucture and surmises. The reasons are based on incorrect assumption of fact and shows total lack of application of mind and do not meet the test of law. 6. On the other hand, learned DR has submitted that in the case in hand, the notice under section 148 was issued within four years from the end of the assessment year therefore, the quantification of the income assessable to tax and escaped assessment is not required to be determined at the time of recording the reasons. The learned DR has pointed out that as per the limitation provided under section 149(1) of the Income Tax Act, no notice under section 148 shall be issued after expiry of four years from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to ₹ 1 Lac or more for that year. Therefore, the said provisions of section 149(1) are not applicable in the case of the assessee when the notice under section 148 of the Income Tax Act is issued much prior to the expiry of four years from the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment that the factum of transfer of property in question by the assessee was already came to the notice of the Assessing Officer during the assessment proceedings for the assessment year 2007-08 as the assessee received the advance towards the sale of house of property in question. However, the assessee claimed that the sale was not concluded in the assessment year 2007-08 but it was concluded in the assessment year 2008-09. The Assessing Officer did not proceed to assess the income arisen from the sale of the property in question and consequentially the assessment for the assessment year 2008-09 was reopened by the Assessing Officer by issuing a notice issued under section 148 on 7.1.2010. It is pertinent to note that the notice issued under section 148 of the Act in the case of the assessee is even before the expiry of one year from the end of the assessment year under consideration. Therefore, the limitation period for issuing the notice under section 148 of the Income Tax Act provided under section 149(1) is not applicable in the case of the assessee. Even otherwise, all the primary facts regarding the cost of acquisition, sale consideration shown in the sale deed and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax Act and the finding of the Hon'ble High Court is also regarding the said provision. The Hon'ble High Court has finally held in para 15 and 16 as under:- 15. The only point urged and pressed before us is whether in absence of anything in the reasons recorded to suggest that the income chargeable to tax which has escaped the assessment is Rs. one lakh or more having not been mentioned the reassessment notice given after four years of the close of the assessment order is valid or not. 16. For the reasons given above, we find sufficient force in the argument of the learned counsel for the petitioner that on the basis of the reasons recorded by the Assessing Officer, the initiation of the reassessment proceedings relevant to the Assessment Year 2000-2001 by means of the notice dated 23.3.2007 after more than four years is clearly barred by time. 10. Similarly, the decision delivered on 19.06.2018 by Agra Benches of the Tribunal in the case of Usha Agarwal vs. Income Tax Officer (supra) is also not applicable in the case of the assessee as in the said case, the issue was similar as in the judgment of Hon'ble jurisdiction High Court because the notice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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