INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Limitation period prescribed under section 149(3) - Applicablity of amendment of section 149(3)

Assessee sold immovable property along with another. During the scrutiny proceedings, it was found that proportionate fair market value of the subject property was Rs. 58,03,000 and that assessee did not file his return of income disclosing capital gains arising from the sale of the subject property. It was further noticed that during the remittance of sale consideration to assessee, deduction under section 195 was not made by purchaser of property. An order under section 163(1) was passed treating the purchaser of the property as the representative assessee of the non-resident assessee. Notice under section 148 was issued to assessee and assessment was completed under section 144 read with section 147. CIT(A) dismissed the appeal of assessee. Tribunal set aside notice under section 148 Held: Tribunal, while allowing the appeal of assessee, recorded a finding that amendment to section 149(3), which came into force with effect from 01-04-2012, was not applicable retrospectively and that amendment made subsequent to expiry of time limit could not be made applicable to assessment, which was already closed. Having regard to the facts, the legal position referred to in order, contention of Revenue that this appeal was to be considered to be falling within the exceptions contemplated in clause 10(a) of Circular No.3 of 2018 was devoid of merit. Thus, there was no substantial question of law involved.

REFERRED : Tatineni Meher Prasad v. ITO (International Taxation) [I.T.A.No.153-156/Viz/2018, dt. 5-9-2018]

FAVOUR : In assessee's favour

A.Y. :

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