Case Law Details
ITO Vs Sant Singh (ITAT Delhi)
Introduction: In a recent case involving ITO Vs Sant Singh, the Income Tax Appellate Tribunal (ITAT) Delhi made a significant decision to dismiss a reopening of the case. The basis for the reopening was a change of opinion by the assessing officer. This article provides a detailed analysis of the case, the arguments presented by both sides, and the final decision reached by the ITAT.
Detailed Analysis: The case revolved around the assessment of Sant Singh’s income, where he had filed a return in 2008, and the assessment was completed in 2010 under section 143(3) of the Income Tax Act. Later, during a survey at a business owned by Sant Singh, it was discovered that he had sold land to M/s. Amazon Enterprises Pvt. Ltd. for a substantial amount. The assessing officer observed that Sant Singh had claimed an exemption under section 54B of the Act, taking into account an advance of Rs. 55 lakhs made for the purchase of land.
The assessing officer also noted that the sale deed did not mention the advance of Rs. 55 lakhs, and there was no proof provided for the claimed exemption. Subsequently, the assessing officer issued a notice under section 148 for the assessment year 2008-09, leading to the reopening of the case.
Sant Singh objected to the reopening, but his objections were dismissed, and the assessing officer proceeded with the assessment. In response, Sant Singh provided a detailed explanation of the transaction and the exemption claimed. The assessing officer, however, was not satisfied and made the addition to the income, leading to an order under section 143(3)/147 of the Act in 2015.
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