9911796707
TMI Blog2018 (9) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... ficient tangible material available with the A.O. on record to initiate reassessment proceedings against the assessee because assessee has not declared capital gains for the purpose of taxation on sale of the property. It may also be noted here that before Ld. CIT(A) assessee has raised a different ground of appeal but in the ground of appeal before Tribunal, assessee challenged the order of the A.O. on the ground that no notice under section 148 was received by the assessee. However, no evidence have been produced in respect of such ground of appeal and even Learned Counsel for the Assessee did not argue on the same. - Decided against assessee - ITA. No. 594/Del/2018 - - - Dated:- 4-9-2018 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 142(1) of the I.T. Act were issued on various dates, but, no compliance was made. Since the assessment was going to be time barred, therefore, A.O. passed the ex-parte assessment order under section 144/147 of the I.T. Act on merits. The A.O. noted that during the year under consideration assessee has sold the residential plot situated at Z.H. Colony, Meerut for a consideration of ₹ 10 lakhs and stamp duty was paid on the value at ₹ 12,18,000/-, as per registered sale deed dated 26.12.2006. The A.O. taken the sale value as per 50C as adopted by the Registration Authority in a sum of ₹ 12,18,000/- and reduced the indexed cost of acquisition for ₹ 2,99,987/- and computed the total long term capital gains at ₹ 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me as taken by the A.O. in the assessment order. Therefore, there is no dispute with regard to this cost also. Apart from the basic cost, assessee had claimed benefit of cost of agricultural land wasted in development of roads etc. The Ld. CIT(A), however, noted that the rights in the road etc., have not been transferred and hence, the cost of such roads cannot be allowed towards the plots sold. The assessee claimed development expenses of ₹ 1,30,852/- for which no evidence has been filed. The Ld. CIT(A) accordingly dismissed this ground of appeal of assessee. 5. The assessee further claimed general exemption of ₹ 1 lakh while computing tax on assessed long term capital gains. The Ld. CIT(A) allowed the same. As regards charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment is bad in law. 7. On the other hand, Ld. D.R. relied upon the orders of the authorities below and submitted that assessee has not filed return of income in response to notice under section 148, therefore, cannot raise such an objection. A.O. as per material on record rightly formed his opinion that income escaped assessment, therefore, initiation of re-assessment proceedings are as per law. 8. After considering the rival submissions, we are of the view that there is no merit in the contention of Learned Counsel for the Assessee. It is well settled law that validity of re-assessment proceedings shall have to be determined on the basis of reasons recorded for reopening of the assessment. The assessment year under appeal is 2007-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, assessee has not exercised such an option because no return under section 148 have been filed. The facts of the case noted in the assessment order shows that A.O. was having credible information that assessee sold the property for ₹ 10 lakhs and for stamp duty purpose it is valued at ₹ 12,18,000/-. Therefore, the capital gain shall have to be calculated on sale of immovable property as per provisions of Section 50C of the I.T. Act. Thus, there were sufficient tangible material available with the A.O. on record to initiate reassessment proceedings against the assessee because assessee has not declared capital gains for the purpose of taxation on sale of the property. It may also be noted here that before Ld. CIT(A) assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
