CONSTITUTION OF INDIA, 1950

Article 226

Writ - Reopening of assessment under section 147 - Allegation that petitioner underquoted sale amount in returns -

Petitioner, along with his wife, purchased a property which included registration charges. The guideline value of the property, as per the records of concerned Sub-Registrar, was at Rs. 1,94,95,000. During scrutiny, AO raised the issue of quoting the property value at a lesser amount in the returns, to which petitioner had given his explanation with regard to the sources and reasons for purchasing the property at a lesser price. Revenue issued a notice under section 148 to reopen the assessment and in response, petitioner pleaded to treat the returns already filed as returns, in response to the notice under section 140, however, plea came to be rejected. Petitioner submitted that notice under section 148 was beyond the period of four years and therefore, was barred by limitation in view of the proviso to section 147. Held: Petitioner had disclosed the full value of the sale deed and that he had shown a lesser amount in the returns, cannot be sustained for two reasons. Firstly, such a reasoning was not assigned while the petitioner's objections were considered at the time of passing the assessment order. This ground of objection was brought in the first time by way of a counter affidavit, which is impermissible. Secondly, statement made along with sale deed presented for registration and value of Rs. 1,94,95,000 was only a guideline, whereas the recitals in the sale deed evidences that the property was purchased at Rs. 1,50,00,000. Thus, guideline value shown in sale deed, cannot be construed to be an actual sale value and therefore, the consequential decision that petitioner had underquoted the sale amount in the returns, cannot be accepted. Therefore, petition was allowed.

REFERRED :

FAVOUR : In favour of petitioner

A.Y. : 2009-10

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