INCOME TAX ACT, 1961

Section 148

Reassessment - Notice beyond four years - Capital gains invoking the provisions of section 50C -

Assessee filed return of income after claiming deduction under Chapter VI-A and declared the book profit, under section 115JB. Later on the assessee company filed revised return of income revising the total income and the assessment was completed under section 143. In reassessment proceedings, AO made the addition relating to long term capital gains invoking the provisions of section 50C. Held: CIT(A) had summarily rejected the contentions of assessee without considering the detailed written submission. It was the obligation of CIT(A) to consider all the facts and decide the issue in speaking order. CIT(A) had not discussed the facts placed before her and the reasoning for rejection of assessee's contention regarding the validity of reopening the assessment. Issue with regard to the validity of reopening of the assessment needs to be addressed by CIT(A) in the light of facts placed by assessee in it's written submissions. Thus, matter was remanded back to CIT(A) with a direction to consider all the facts and submissions made by the assessee.

Relied:CIT v. Bhanji Lavji (1971) 079 ITR 0582 (SC) : 1971 TaxPub(DT) 0315 (SC) Mahalaxmi Motors Ltd. v. DCIT & Anr. (2004) 265 ITR 53 (AP) : 2004 TaxPub(DT) 1070 (AP-HC) JCIT & Ors. v. George Williamson (Assam) Limited (2002) 258 ITR 126(Gauhati) : 2002 TaxPub(DT) 1610 (Gau-HC) CIT v. Kelvinator Of India Ltd. (2002) 256 ITR 1 (Delhi)(FB)) : 2002 TaxPub(DT) 1348 (Del-HC) CIT & Anr. v. Foramer France (2003) 264 ITR 566 (SC) : 2003 TaxPub(DT) 0933 (SC)

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2009-10

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