INCOME TAX ACT, 1961

Section 153A

Search and seizure - Assessment under section 153A - Exemption under section 54F -

A search under section132 was carried out at residential premises of assessee who filed her original return of income under section 139(1). Before the search, the time limit to issue notice under section 143(2) for passing a regular assessment order under section 143(3) had already expired. On the strength of this, assessee submitted that AO had disallowed claim of assessee for grant exemption under section 54F, and such exemption was denied without relying upon any material unearthed during the course of search, therefore, his order qua this issue was not sustainable. Held: There was no dispute with regard to fact that along with computation of income for the claim of exemption under section 54F, assessee had not appended any note exhibiting the fact that she owned other flats. Non-disclosure of the above facts in the computation of income if looked into in the light of the reply given to question would indicate that prima facie claim of assessee was not admissible, because, she failed to disclose details of that property. Hence, it was unearthed that assessee's claim under section 54F was doubtful claim and AO was justified to initiate action under section 153A.

Relied:Pr.CIT v. Devangi Alias Rupa (2017) 394 ITR 184 (Guj): 2017 TaxPub(DT) 1376 (Guj-HC) Pr. CIT v. Desai Construction Pvt. Ltd. (2016) 387 ITR 552 (Guj) : 2016 TaxPub(DT) 4526 (Guj-HC) Priya Holding Pvt. Ltd. v. Asstt. CIT (2018) 90 taxmann.com 408 (Guj) : 2018 TaxPub(DT) 1023 (Ahd-Trib)

REFERRED :

FAVOUR : Against the assessee

A.Y. :

INCOME TAX ACT, 1961

Section 54F

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