Case Law Details
P. Divagar Vs ITO (ITAT Chennai)
n the present case, the only issue for consideration is whether the reopening of assessment under section 147 of the Act is valid or not. For the sake of convenience, the reasons recorded and communicated to the assessee are reproduced as under:
“The assessee filed his return of income for the A.Y.2011-12 on 25.03.2013 admitting total income of Rs.2,17,740/- under the head salary and under the head capital gain admitted NIL income claiming exemption u/s 54 of Rs.12,39,280/-. During the Year under consideration the assessee has sold a property along with his brother and his share of consideration was Rs.39,05,530/-. Enquiries revealed that assessee has purchased a plot in his wife name. Hence exemption u/s 54 as claimed by the assessee is not allowable as plot has been purchased instead of residential house and that too in the name of his wife.
From the above issues, I have reason to believe that income has escaped assessment for the assessment year 2011-12; by virtue of section 147 of the I T Act.”
From the above, it is very clear that the Assessing Officer has not alleged that there is a failure on the part of the assessee to disclose fully and truly all material facts to complete the assessment. That apart, we find that there is no failure on the part of the assessee in respect of disclosure of all relevant materials required for assessment fully and truly. Therefore, in our opinion, the reopening of assessment under section 147 of the Act is invalid and the same is quashed.
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