TMI Blog2021 (12) TMI 1398X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. Assessment orders for A.Y. 2006-2007 and A.Y. 2007-2008 ought to have been completed u/s 153C r.w.s. 153A of the Act and not u/s 147 r.w.s. 143(3) of the Act The issue raised in the additional grounds, namely, whether the assessment is to be completed u/s 147 or 153C of the Act has not been raised before the Income Tax Authorities. The issue raised in additional grounds is a jurisdictional issue, which goes to the root of the matter. Therefore, in the interests of justice and equity, we deem it appropriate, the same needs to be adjudicated first by the Income Tax Authorities. Accordingly, we restore the issue raised in the additional grounds to the files of CIT(A). At this point, we refrain from adjudicating the issue on merits. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see had transferred the land purchased from NTCL to SDL during the financial year relevant to assessment year 2006-2007 and earned capital gains of Rs.1.15 crore. The A.O. came to this conclusion as the assessee had collected substantial amount of consideration during the financial year relevant to assessment year 2006-2007 from SDL. Consequently, the assessee was served notice u/s 148 of the I.T.Act by the Assessing Officer. In response to the said notice, the assessee filed `NIL return on 19.05.2013. The assessee filed objections to the notice issued u/s 148 of the Act. It was submitted that the income of Rs.1.15 crore giving rise to capital gains concluded in the assessment year 2010- 2011, when assessee had duly registered the sale dee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see. Rs.1,92,50,000/- by cheque No.076196 dated 06.01.2007 drawn on UTI Bank. This way the assessee transferred the land purchased from M/s. National Textile Corporation to M/s. Sobha Developers Ltd. The profits! capital gains. from the above sale are as follows: Sale Consideration received by the assessee from M/s. Sobha Developers Rs.10,05,00,000/- Less: Cost Rs. 8,90,00,000/- Profit or gains Rs. 1,15,00,000 /- The assessee has not filed its return as provided in u/s 139(1) of the Act. The above amount of Rs.1, 15,00,000/- represents the income of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stration was only a formality. Therefore, it was concluded that the sale of property crystallized in the assessment year 2006-2007. 6. As regards the assessment year 2007-2008 is concerned, the CIT(A) confirmed the A.O. s order, where an identical figure was assessed on a protective basis. 7. Aggrieved by the orders of the CIT(A), the assessee has raised legal grounds that the impugned notice issued u/s 148 of the Act is bad in law for the reason that there is no failure on the part of the assessee to disclose fully and truly necessary facts for completion of the assessment. It was submitted that the reasons recorded are reason to suspect and not reason to believe. The assessee has also raised grounds on merits. The assessee vide its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. The appellant craves leave to add, alter, amend, substitute, change and delete any of the grounds of appeal. 5. For the above and other grounds that may be urged at the time of hearing of the appeal, the appellant prays that the appeal may be allowed and justice rendered. 8. On query from the Bench whether the above additional grounds are to be decided if a decision on merits is taken, the learned AR insisted for the adjudication of the additional grounds. 9. The learned Departmental Representative, on the other hand, submitted that the additional grounds raised are fresh issues not raised before the Income Tax Authorities and in the event, the same are admitted, the matter needs to be restored to the CIT(A) for adjud ..... X X X X Extracts X X X X X X X X Extracts X X X X
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