INCOME TAX ACT, 1961

Section 147 proviso, 148

Reassessment-Notice beyond four years - No failure to disclose truly and fully all material facts - -

Assessee sold certain property being an agricultural land admeasuring 7986 sq. yards in the form of a farmhouse along with water tank, servant quarter, etc., constructed on it for a consideration of Rs. 30,00,000 and assessee claimed deduction under sections 53(b), 54(1)(i) and 54E from capital gains arising from sale of property. The deductions as claimed were allowed. Later, AO noticed that property in question was agricultural land and, therefore, deduction under sections 53(b) and 54(1)(i) had been wrongly allowed. In such circumstances, AO issued notice under section 148 after expiry of four years from the end of relevant assessment year so as to reopen assessment. Held: Assesssee had duly filed conveyance deed; permission of the appropriate authority to sell impunged property and other documents during riginal assessment proceedings and nothing was suppressed. Accordingly, there was no failure on part of assessee to disclose fully and truly all material facts necessary for assessment, Accordingly, reassessment notice was quashed as invalid in view of proviso to section 147.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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