Case Law Details
Kunwar Ayub Ali Vs ITO (ITAT Delhi)
ITAT Delhi held that reopening of assessment under section 147 of the Income Tax Act based on mistaken factual premise is unsustainable in law.
Facts- During the year, the assessee sold agricultural land with constructed area for actual consideration of Rs.24,69,000/-which represents 1/4th of total consideration of Rs.98,76,000/- where 3/4th share belongs to one Shri Mashroof Ali. AO reopened the assessment by issuing notice u/s. 148 of the Act dated 26.03.2014 alleging escapement of income with the allegation that the assessee sold residential/ agricultural land of Village Dasana for Rs.98,76,000/- as against the circle rate of Rs.1,56,99,500/-. It was alleged that capital gain was derived from the said transaction but ITR was not filed resulting in escapement. The income was assessed at Rs.72,11,880/- by an ex-parte order u/s. 144 r.w. Section 147 of the Act.
Aggrieved, the assessee preferred appeal before the CIT(A). The CIT(A) however upheld the assumption of jurisdiction assumed under Section 147 but however granted partial relief on merits.
Further aggrieved, the assessee preferred appeal before the Tribunal.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
