Case Law Details
Sh. Ghasi Lal Gurjar Vs ITO (ITAT Jaipur)
Held that the department has failed to issue notice, failed to report the reasons for reopening the case and also failed to take the approval of the appropriate authority before as initiation of proceedings u/s 147 of the I.T. Act. Appeal allowed on technical ground.
Facts-
The assessment in the case of the assessee was completed u/s 144 by the AO and addition was made under LTCG at Rs. 92,70,000/- for the sale of land. During the course of the appellant proceeding before CIT(A) the assessee filed additional evidence.
AO stated that the assessee had sold a land on 08-05-2008 for consideration of Rs.86,40,000/- the value of which has been taken by the Collector (Stamps), Jaipur at Rs.98,40,000/- for stamp purposes. The land was situated within the municipal limit of Jaipur Nagar Nigam, thus, the land has been ascertained as a capital asset in the meaning of Section 2(14) of the Income Tax Act,1961 and as per provisions of section 50-C of the amount of Rs.98,40,000/- was liable to tax under Capital Gain Tax. Therefore, believing that the income to the tune of Rs.98,40,000/-has escaped assessment, initiated proceedings U/s 147 of the IT Act,1961 by issue of notice U/s 148 on 08-11-2013. The notice was duly served upon the assessee on 14-11-2013.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
