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TMI Blog2023 (6) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... if AO passed the assessment order by showing the assessee as the Legal Representative of late Smt. V. Rajyalakshmi, but he considered the return of income filed with PAN of the assessee [LR] and took into consideration the professional income returned by the assessee. In these circumstances, we find it difficult to hold that the learned CIT(A) committed any error. In the reasons recorded themselves show that the assessee is not the sole Legal Representative of late assessee and according to the reasons there is another brother - Hon'ble Madras High Court in the case of CIT vs. Muthukarupan [ 2006 (9) TMI 140 - MADRAS HIGH COURT] upheld the findings of the Tribunal that it would be travesty of justice if one of the co-owners is solely picked out and an enhanced income for the same property is attributed in his hands. Decided against revenue. - ITA No. 1554/Hyd/2017 - - - Dated:- 12-6-2023 - Shri Rama Kanta Panda, Accountant Member And Shri K.Narasimha Chary, Judicial Member For the Assessee : Shri Pawan Kumar Chakrapani, AR For the Revenue : Shri Jeevan Lal Lavidiya, CIT-DR ORDER PER K. NARASIMHA CHARY, JM: Aggrieved by the order dated 02/05 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the three vendors under the sale deed, but stressed the point that his mother did not receive any amount towards consideration for her relinquishing the rights in the property in question. 6. Learned Assessing Officer obtained information from other sources also. He concluded the assessment by order dated 30/12/2016 passed under section 143(3) read with section 147 of the Act, adding the amount of Rs. 12.16 crores in the hands of the assessee in his individual capacity, which the assessee challenged before the learned CIT(A). 7. Assessee contended before the learned CIT(A) that no notice under section 148 of the Act was issued to the assessee in his individual capacity, but having issued such notices to the assessee in his capacity as Legal Representative of late Smt. V. Rajyalakshmi, the learned Assessing Officer concluded the assessment on the assessee in his individual capacity, which is bad under law. Assessee contended that for re-opening the proceedings under section 148, issuance of notice under section 148 of the Act to the assessee in his individual capacity is mandatary for concluding such assessment against him in his individual capacity. Assessee further con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return under section 147 of the Act. According to the learned DR, section 50C of the Act properly invoked by the learned Assessing Officer and in the absence of any information, the cost of acquisition was rightly adopted as Rs. 1 lakh and indexation was granted from the financial year 1981-82. Since the assessee himself replied that his original return may be treated as the return filed in response to section 148 of the Act, the learned Assessing Officer rightly added the capital gains to the income returned by the assessee in his individual capacity. 10. Per contra, submissions of the learned AR are twofold. Firstly, that having initiated the reopening proceedings against the assessee in his representative capacity, and having not initiated the re-opening proceedings against the assessee in his individual capacity, it is not permissible to assess the alleged income of the mother of the assessee in his hand in his individual capacity. The second limb of argument of the learned AR is that the sale deed referred to by the learned Assessing Officer in the assessment order clearly shows that there were three co-sharers in the alleged property that was sold. He further contended tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l heirs. Sri V. Venkata Ramana, assessee of this charge and one of the legal heirs, has not disclosed any Capital Gains as per the Return of Income filed for the Asst.Year 2009-10 on 29-09-2009. Incidentally on 18.03.2000,Sri V. Venkata Ramana received the entire sale consideration of Rs. 1 crore consequent to the sale. Hence it is proposed to issue notice u/s.148 in the name of Sri Vedula Venkata Ramana being the legal heir of Sri V.Rajyalakshmi for reopening of assessment for the assessment year 2009-2010. 13. It could be seen that the notice dated 18/03/2016 issued to the assessee also reads that such notices was issued to Shri Vedula Venkata Ramana, legal heir of late Smt. V. Rajyalakshmi . However, the notice under section 148 of the Act and subsequent notices issued under section 143(2) of the Act read the PAN card number as ABHPV1213E, which is the PAN of the assessee in his individual capacity, thereby prompting the assessee to reply that the original return of income may be treated as the return of income in response to the notice under section 148 of the Act. As rightly observed by the learned CIT(A), the status of the assessee is obfuscated from the inception. Lear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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