Yusufbhai Gafurbhai Shaikh Vs ITO (ITAT Surat)
Reopening Invalid Where Capital Gains Already Disclosed and Taxes Paid – Section 147 Proceedings Quashed
The Surat Bench of the ITAT allowed the assessee’s appeal for AY 2010-11 and quashed the reassessment proceedings initiated under section 147. The Tribunal held that the assessee, being only a 1/6th co-owner of the property, had already disclosed the sale transaction, computed the long-term capital gains relatable to his share, and paid due taxes thereon. All relevant details and documentary evidences had been furnished even prior to issuance of notice under section 148, including in response to notice under section 133(6).
The Tribunal observed that Explanation 2(a) to section 147, which deems income to have escaped assessment where no return of income has been filed, was wrongly invoked since the assessee had duly filed the return and discharged his tax liability. Reassessment cannot be initiated merely for verification or on suspicion when no income chargeable to tax has escaped assessment and all primary facts were fully and truly disclosed. As the jurisdictional conditions under section 147 were not satisfied, the reassessment was held to be bad in law and was accordingly quashed.
FULL TEXT OF THE ORDER OF ITAT SURAT
