| Question And Answer | |
|---|---|
| Subject: | DISCRIMINATION |
| Category: | Income-Tax |
| Querist: | MOTI |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Co owners, Reassessment |
| Date: | November 18, 2022 |
THREE CO-OWNERS PURCHASED A PLOT OF LAND IN 2012 AND IT WAS SOLD IN 2017. ALL OF THEM DECLARED THE INCOME IN THEIR RETURNS WHICH WERE ACCEPTED U/S 143 (1) . NOW IN ONE CASE , THE ASSESSMENT IS REOPENED U/S 148 AND COST IS DISALLOWED AS PURCHASE DOCUMENT WAS NOT REGISTERED. IS THIS CORRECT ? PLEASE CITE CASE LAW, IF ANY BECAUSE IN OTHER 2 CASES ASSESSMENT HAS NOT BEEN REOPENED.
Merely because the other two cases have not been reopened, cannot be a ground for challenge. The Department is entitled to reopen files and enquire into transactions made by the assessee. The Assessee will have to demonstrate the purchase of land by furnishing a copy of bank statements and other documents.
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