Validity of reopening an assessment beyond four years from the ...

Reassessment quashed; 90cr deduction allowed; Multiple floors not separate units; Website info can't reopen case.

Case Laws     Income Tax

October 1, 2024

Validity of reopening an assessment beyond four years from the end of the relevant assessment year, denial of deduction u/s 54F, and the addition on the ground of owning more than one residential house. The key points are: the assessee did not fail to furnish requisite details, satisfying the proviso to Section 147; the Assessing Officer could not have validly assumed jurisdiction u/s 147 based on website information; different floors of a property cannot be construed as independent residential units, as decided by the Tribunal in the assessee's own wealth tax case; merely having several independent residential units does not impact the claim for deduction u/s 54F. The reassessment proceedings were quashed, and the assessee was entitled to a deduction of Rs. 90 crores u/s 54F. The denial of deduction u/s 54F for not utilizing the entire sale proceeds was addressed, clarifying that no deduction u/s 80G was claimed for the donation to the trust. The loan from Alert Buildtech was accepted as genuine, and no addition was made u/s 68.

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