ITO Vs Gurdeep Singh Chhabra (ITAT Indore)
ITAT Indore held that the registered sale-deed would relate back to and have effect from 26.03.2013 falling with previous year 2012-13 relevant to AY 2013-14 and hence the impugned transaction of sale was taxable in AY 2013-14 and not in 2014-15. Accordingly, reopening of assessment for AY 2014-2015 is illegal and unsustainable.
Facts- The assessee-individual filed his return of AY 2014-15 on 29.03.2016 declaring a total income of Rs. 4,31,880/- which was assessed. Subsequently, the AO received an information that the assessee, jointly with Shri Ranveer Singh Chhabra (brother of assessee), sold an immovable property for Rs. 2,25,00,000/- (valued by Stamps Authority at Rs. 4,15,20,000/-).
Based on this information, the AO framed a belief that the transaction done by assessee had escaped assessment. Accordingly, the AO issued notice dated 22.04.2021 (after expiry of 6 years from end of relevant AY 2014-15) u/s 148 to re-open assessee’s case of AY 2014-15 under erstwhile provision of section 147. Notably, AO dropped the said proceedings. However, the AO re-initiated proceeding under the new scheme of section 147. AO rejected assessee’s submission and ultimately made an addition of Rs. 2,07,60,000/- being 50% share of assessee in the stamps valuation of sold property. Further, the AO also made another addition of Rs. 5,50,000/- on account of undisclosed revenue from sale of services.
