AO reopened assessment on basis of difference between market ...

Property value difference not taxable income. AO failed to consider objections. Petitioner disclosed all facts. Reopening beyond 4 years invalid.

Case Laws Income Tax

August 3, 2024

AO reopened assessment on basis of difference between market value and registration value of property, assuming petitioner was owner. Petitioner argued section 50C inapplicable as not owner, section 43CA not in force that year. HC held AO failed to consider petitioner's objections regarding no escapement of income due to value difference being non-taxable. No information with AO showing direct nexus with escaped income alleged. Petitioner disclosed all material facts, so AO lacked jurisdiction u/s 147 proviso to reopen beyond 4 years. Petition allowed.

View Source

← Previous Next →

AO reopened assessment on basis of difference between market ...

Property value difference not taxable income. AO failed to consider objections. Petitioner disclosed all facts. Reopening beyond 4 years invalid.

Case Laws Income Tax

August 3, 2024

You may also like:

Rental income earned by assessee should be assessed as income from house property, not business income. AO failed to highlight aspects indicating rental income was...

Income from house property - consider the Ambey Valley property as self-occupied property - determination of annual value - CIT(A) has upheld that the 7% of cost of...

Taxability of long term capital gain on sale of immovable property - value u/s 50C - difference in value determined by the SVA and DVO - These facts clearly establish...

The AO failed to correctly compute the undisclosed income after considering the correct sale value of land as per Form 26AS. The assessee claimed that one of the lands...

Income from house property - ALV determination - AO has though adopted the rate of rent as it was agreed upon between the parties in respect of property in the vicinity...

Addition on account of house rent - Income from house property - The AO failed to appreciate such estimation of annual letable value as per provision of Section 23(1...

Rental income correctly classified as "income from house property" rather than "income from business" despite composite rent including amenities charges. TDS deducted...

The Department initiated the case based on income tax documents, which were public documents, and the presumption is on their truthfulness. The difference in value based...

The case pertains to the correct head of income for rental income receipts, whether assessable under 'Income From House Property' or 'Income from Business'. The key...

Rent received by a person not the owner, taxable as house property income – High Court

Addition u/s.56(2)(vii)(b)(ii) - difference between the value fixed by the stamp duty authorities and the sale consideration - Government of Tamil Nadu has reduced the...

Correct head of income - Characterization of income - rental income as 'business income' or 'income from house property' - there is no doubt that assessee has object of...

Correct head of income - the major source of income for the assessee is rental income. The assessee obtained long-term lease of the property and sub-leased the same in a...

Income from house property - one is self occupied property and second is vacant property - AO has applied ALV at 7% of book value of the property and computed deemed...

The Income Tax Act did not intend to tax deemed rental income from properties held as stock-in-trade prior to the assessment year 2018-19. Section 23(5), introduced from...

Quick Updates: