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TMI Blog2014 (9) TMI 572X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gain tax in the United Kingdom as per domestic law and not taxable in India. Acting on the said note, when the return was processed under Section 143(1) of the Income Tax Act (hereinafter referred to as 'the Act'), the Assessing Officer accepted the return. However, subsequently he issued a notice under Section 148 of the Act, on the ground that he has reason to believe that any income chargeable to tax has escaped assessment within the meaning of section 147 of the Act. The assessee appeared and contended that there is no other material other than what was produced along with the return, which is the basis for coming to such conclusion and therefore, he stated that the proceedings initiated for re-opening the assessment is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f this Convention, each Contracting State may tax capital gains in accordance with the provisions of its domestic law." The assessee under the scheme exercised option for sale of 1556 shares in November 1999 resulting in capital gains of Rs. 4,52,931/-. 6. It is not in dispute that the assessee is a resident of India. On the ground that the capital gain has arisen in United Kingdom, he contended that, it is not taxable in India. As is clear from Article 14, as he is a resident of India, in terms of the domestic law in this country, he has to pay capital gains, which he did not pay. Though he gave a note along with the returns, as the Assessing Officer did not apply his mind and more over, it was an assessment under Section 143(1) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts or law, reassessment is permissible. Income may escape assessment as a result of lack of vigilance of the ITO or due to perfunctory performance of his duties without due care and caution. Even in a case where a return has been submitted to the ITO who erroneously fails to tax a part of the assessable income, it is a case of the said part of the income as having escaped assessment and the AO has jurisdiction under s. 147 to reopen the assessment and bring to tax the income that has escaped assessment. A taxpayer cannot be allowed to take advantage of any of those lapses, as ultimately if such a advantage is allowed, it would be prejudicial to the interests of the Revenue and public interest". 7. In that view of the matter, we do not s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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