INCOME TAX ACT, 1961

Section 147

Reassessment - Reason to believe - Assessee alleging borrowed satisfaction of investigation wing - AO analysed, verified and cross-checked the information

AO received information from investigation wing, as to assessee having purchased certain property for Rs. 29,30,000 on 30-4-2008 and sold the same on 16-8-2011 for Rs. 1,37,00,000. Accordingly, AO reopened assessment forming the belief that substantial long-term capital gain chargeable to tax in the hands of assessee had escaped assessment. Assessee challenged this on the ground that AO reopened assessment on borrowed satisfaction of investigation wing.Held: Information emanated from investigation wing was duly supported by documentary evidence in the form of sale deeds of both the transactions and after going through the same, it was noted by AO that sale of immovable property of assessee had given rise to long-term capital gain, which was chargeable to tax in the hands of assessee. Also, assessee had not filed return of income for the year under consideration. It was thus clear that specific information received by AO, which constituted tangible material, was analysed, verified and cross-checked by AO and after such analysis and cross verification, a belief was formed by him that substantial long-term capital gain chargeable to tax in the hands of assessee had escaped assessment. Accordingly, assessment for the year under consideration was reopened by AO after arriving at his own satisfaction by analysing and cross-verifying information received by him and since the same was clearly evident from reasons recorded by him, reopening of assessment by AO was in accordance with law.

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

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