India Land Ventures Limited Vs DCIT (ITAT Mumbai)
The appeal arose from the assessment order passed under Sections 147 read with 144C(13) of the Income-tax Act, 1961 for Assessment Year 2018-19 pursuant to the directions of the Dispute Resolution Panel. The assessee challenged, among other issues, the denial of benefits under the India–Mauritius Double Taxation Avoidance Agreement, the applicability of Article 27A (Limitation of Benefits), non-allowance of set-off of brought forward long-term capital loss, levy of fee under Section 234F, initiation of penalty under Section 270A, and the validity of the reassessment proceedings.
The Tribunal first considered the additional grounds challenging the validity of the reassessment proceedings. It admitted these grounds after observing that they were purely legal in nature, required no further investigation of facts, and went to the root of the reopening and consequential assessment.
According to the assessment order, the assessee had not filed a return of income for the relevant assessment year. Information available with the Assessing Officer indicated that the assessee had sold shares of India Land Hotels Mumbai Pvt. Ltd. and earned capital gains of Rs. 28,27,19,809, which were considered taxable in India. Based on this information, a notice under Section 148A(b) was issued, followed by an order under Section 148A(d) dated 22.04.2022. A draft assessment order determined income of Rs. 98.17 crore, and the final assessment order was passed after the Dispute Resolution Panel’s directions.
