The assessee filed his return of income for the relevant assessment year in form ITR-5 and the said ITR was subject to scrutiny in regular assessment.\u00a0 The income offered under the head \u201cCapital Gain\u201d on transfer of land has duly been scrutinized and accepted u\/s 143(3) of the Act.\u00a0 Subsequently, the AO received certain information that the assessee had purchased agriculture land which was converted into non-agricultural land for the residential and commercial purposes and opined that this is the trading activity liable to be taxed under the head \u201cBusiness Income\u201d and accordingly, on such reasons, issued the notice u\/s 148 of the Act.\u00a0<\/p>\n
On Writ, the Hon\u2019ble Court noted that the reasons recorded by the AO were incorrect as the assessee had filed the return of income in Form ITR-5 and not in Form ITR-3 or, ITR-4, that the income offered in the ITR-5 including the income under the head \u201cCapital Gain\u201d was scrutinized in depth for passing the order u\/s 143(3).\u00a0 The Court further observed that the impugned notice was issued solely on the basis of audit objection, which is not permissible in law and thus, the AO has not arrived at an independent reasoning for reopening and more so, in the absence of any fresh, tangible material for reopening of the concluded assessment after four years in the absence of any failure on the part of the assessee to disclose truly and all the materials relevant to the assessment.\u00a0 The notice u\/s 148 was to be quashed. Referred\u00a0 \u00a0CIT v. P.V.S. Beedies (P.) Ltd. (1999) 103 Taxman 294\/237 ITR 13 (SC)(AY. 2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 147 : Reassessment \u2013With in four years-Purchase and sale of land-Audit objection-Business income or capital gains-No fresh, tangible information-Reassessment notice and order disposing the objection is quashed.[S.28(i), 45, 148, Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-50833","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-ddT","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=50833"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50833\/revisions"}],"predecessor-version":[{"id":50834,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50833\/revisions\/50834"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}