9911796707
TMI Blog2023 (1) TMI 1472X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee to disclose.
The petitioner has fully and truly disclosed all material facts necessary for its assessment, he has no further duty to disclose as there was nothing embedded. Inference of law on the given facts is for the Assessing Officer.
In the present case, a query was raised with regard to the sale of the shop and the details called for as can be evinced from the letter dated June 26, 2015. The two letters with their enclosures attached to the petition evince that the queries were answered by the petitioner.
In our view, the notice in the present case is a review of the earlier decision based on a change of opinion. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,37,676 and not offered any rent on annual letting value for taxation. The closing stock held by the assessee-firm requires to be taxed under the head Income from house property and since the fair market rent of the property is not available, the annual letting value of the property should be taken at 8 per cent. after relying on the hon'ble Gujarat High Court in the case of Shri Bipinbhai Vadilal Family Trust No. 1 v. CIT [1994] 208 ITR 1005 (Guj); 1994 SCC OnLine Guj 237. Accordingly, the working of the income from the house property comes to Rs. 38,94,110 which is escaped income. 3. In view of the above, I have reason to believe that an amount of Rs. 57,66,110 (as discussed above as Rs. 18,72,000 + Rs. 38,94,110 chargeable to tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h as the insertion of this provision came into effect only from April 1, 2014. Accordingly, the Assessing Officer had taken a conscious decision not to make any addition for notional rental income since it was legally not permissible. She relied upon the following decisions in support of her contention : (a) CIT v. Neha Builders P. Ltd. [2008] 296 ITR 661 (Guj) ; 2006 SCC OnLine Guj 380; (b) Rajendra Godshalwar v. ITO 2019 SCC OnLine ITAT 1572 (bearing I. T. A. No. 7470/Mum/2017, order dated 31-1-2019); and (c) Dy. CIT v. Bengal Shapoorji Housing Development Pvt. Ltd. Bearing I. T. A. No. 4369/Mum/2019, order dated 23-3-2021 Moreover, the addition of notional rent that was made in the assessment year 2013-14 was deleted by the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ein it held that the view expressed by a two-judge Bench of the apex court in Kalyanji Mavji and Co. v. CIT [1976] 102 ITR 287 (SC) ; (1976) 1 SCC 985 ; 1976 SCC (Tax) 111 ; 1976 (2) SCR 966 that income escaping assessment due to "oversight, inadvertence or mistake" by the Income-tax Officer must fall within section 34(1)(b) of the Indian Income-tax Act, 1922 did not lay down correct law in the light of the view expressed by the apex court in Maharaj Kumar Kamal Singh v. CIT [1959] 35 ITR 1 (SC) ; 1958 SCC OnLine SC 118 and CIT v. A. Raman and Co. [1968] 67 ITR 11 (SC) ; 1967 SCC OnLine SC 49. 7. It is equally settled as held in ITO v. Lakhmani Mewal Das [1976] 103 ITR 437 (SC) ; (1976) 3 SCC 757 ; 1976 SCC (Tax) 402 that the dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h regard to the sale of the shop and the details called for as can be evinced from the letter dated June 26, 2015. The two letters with their enclosures attached to the petition evince that the queries were answered by the petitioner. In this regard this court in the case of Wyeth Ltd. v. Asst. CIT [2023] 456 ITR 536 (Bom) ; 2022 SCC OnLine Bom 11823 ; [2022] 211 DTR (Bom) 393, has held as under (page 541 of 456 ITR) : ". . . once a query is raised during the assessment proceeding and the assessee has replied to it, it follows that the query raised was a subject of consideration of the Assessing Officer while completing the assessment. Change of opinion does not constitute justification and/ or reasons to believe that income chargeab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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