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TMI Blog2019 (10) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... itional ground challenging the validity of issue of notice u/s 148 of the Income Tax Act, 1961 (in short 'Act') and argued that the additional ground is a legal ground which goes to the root of the assessment made by the Assessing Officer (AO) and the complete facts are available in the assessment records with the lower authorities and no verification or investigation is required to adjudicate the ground. Therefore requested to admit the additional ground in the interest of justice. 3. We have heard both the parties and perused the material placed on record. The additional ground raised by the assessee is stated to be purely legal ground which does not require further investigation. Therefore, we admit the addition ground. The additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontrary to the information contained in the material considered by him for reopening the assessment and does not have any live nexus with such information. Hence, argued that the notice issued u/s 148 is invalid and required to be quashed. 5. On the other hand, the Ld.DR argued that the AO found that the assessee had received the interest on bank deposits of Rs. 31 lakhs as per the balance sheet as on 31.03.2010 out of sale proceeds of Rs. 37.80 lakhs relating to sale of agricultural land of 1.26 acres in the year 2006-07 relevant to the A.Y.2007-08. As per the information available before the AO, the assessee has sold the property in the capacity of GPA holder but not as the owner, thus, the source of deposit made in the bank account cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g taxable income of Rs. 1,51,600/- and the said return was processed u/s 143(1). No assessment was made u/s 143(3) of the Act. Subsequently, during the assessment proceedings of the A.Y.2010-11, the AO came to know that the assessee had received the interest and having fixed deposits with Canara bank to the tune of Rs. 31.00 lakhs and the source of deposits was claimed to be from the sale of agricultural land. The AO has noted from the copy of the sale deed that the assessee affected the sale in the capacity of GPA holder and therefore, the AO took view that the sale proceeds would not belong to the assessee and the source of the deposit remained unexplained. Accordingly reopened the assessment stating that the sum of Rs. 37.80 lakhs deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale deed dated 21.04.2004 on 07.05.2004 under Sy.No.46/2 in Paradeshipalem for a sum of Rs. 4.00 lakhs including registration fee and stamp duty and sold 0.76 cents to M/s Dhatri Infrastructure Pvt. Ltd., Visakhapatnam for a consideration of Rs. 22,80,000/- and 0.50cents to Gumma V.S.S.Nagesh, Srikakulam for a consideration of Rs. 15,00,000/-. Thus the assessee has received the sum of Rs. 37.80 lakhs towards sale of agricultural land during the financial year 2006-07 and the assessee did not offer the sale consideration for the purpose of capital gains tax. In the instant case, the assessment was also not made by the AO u/.s 143(3) of the Act. The purpose of reopening the assessment was to examine the sources of bank deposits made in the Ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the same transaction would not fall within the category of any other income chargeable to tax which has escaped the assessment and has come to the notice subsequently. Therefore, it cannot be said that the AO has formed a belief contradictory to the information contained in the material considered by him. The fact is that as per the sale deed, the sale was executed as GPA holder. Since the assessment for the A.Y. 2007-08 was complete u/s 143(1), the AO neither called for any information nor formed any opinion with regard to sale transaction of agricultural land. The assessee relied on the decision of Hon'ble High Court of Bombay in the case of Commissioner of Income Tax Vs. Jet Airways (I) Ltd. (2011) 331 ITR 236. The Hon'ble High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome other than the income escaping assessment as per the reasons recorded for formation of belief while initiating proceeding under Section 147 of the Income Tax Act, 1961." 6.2. In the instant case, no new issue has cropped up, subsequently on new set of facts. The reason forming belief was deposit of Rs. 31.00 lakhs which was sourced from the sale of land which attracts the capital gains tax and the assessee did not offer the same for taxation. Thus the issue for reopening and addition made is one and the same. Therefore, the decision of Hon'ble High of Andhra Pradesh has no application in the assessee's case. The assessee also relied on the Hon'ble Gujarat High Court in the case of Vijay Harischandra Patel Vs. Income Tax Officer (2018) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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