Vivek Jaisingh Asher Vs ITO (Bombay High Court)
The Bombay High Court examined a writ petition challenging an assessment order passed under Sections 143(3) read with 144B of the Income Tax Act for Assessment Year 2020–21. The petitioner had filed a return declaring income of ₹3,11,410, and the case was selected for scrutiny to examine capital gains deduction. A show cause notice dated 23 August 2022 was issued proposing to treat the stamp duty value of a flat received upon surrender of tenancy rights as deemed income under Section 56(2)(x) and to deny deduction under Section 54F.
The petitioner explained that he was a tenant and had received a new flat as permanent alternate accommodation under a redevelopment agreement. The stamp duty value of the flat was ₹11.68 crore, and the petitioner claimed that the value represented consideration for surrender of tenancy rights and was eligible for deduction under Section 54F.
However, the Assessing Officer passed the final order treating the entire stamp duty value as unexplained investment under Section 69, without issuing any specific show cause notice under that provision. The justification given was that the assessment was time-barred and there was insufficient time to issue a fresh notice.
