INCOME TAX ACT, 1961

Section 148

Reassessment - Validity - Assessment reopened on the basis of AIR information -

Assessment of assessee was completed under section 144 read with section 147 whereby AO had brought to tax long term capital gain claimed by assessee. Assessee had challenged the initiation of proceeding under section 147 by issuance of notice under section 148. Assessee submitted that AO issued notice under section 148 on account of escapement of income on the basis of AIR information and however, the same cannot be the sole basis for issuance of notice under section 148. For issuance of notice under section 148, the satisfaction must of AO himself and the borrowed satisfaction cannot be treated as satisfaction of AO. Held: Where AO was in possession of information that assessee had sold a property and the same was not reported in the return of income, it was clearly a case of escapement of income in terms of capital gains which would arise on sale of such property. Reasons for escapement of income was capital gains arising on the sale transaction of property and not that sale consideration was less than value adopted for stamp duty purposes, therefore, mere inter-change of sale consideration and value adopted for the purposes of stamp duty in the reasons so recorded could not be treated as fatal which can deny the acquisition of jurisdiction by AO.

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

INCOME TAX ACT, 1961

Section 55

SUBSCRIBE FOR FULL CONTENT

OR Try Reload the Page