Assessing Officer held that assessee was actual owner of property and in absence of proper details and credible evidences, entire sale amount of property was treated as long term capital gains in hands of assessee and taxed accordingly. CIT(A) deleted the addition. On appeal\u00a0 the Tribunal held that\u00a0 land\u00a0 which formed part of auctioned assets belonged to one of partner of firm and not to firm. therefore firm could not be charged long term capital gain on alienation of an asset which did not belong to it, therefore, only gains attributable to firm could be on account of building structure and plant and machinery which were owned by firm and depicted in its schedule of fixed assets.\u00a0\u00a0 Assessing Officer was required to arrive at figures of amounts realized on sale of building structure and plant and machinery and compute profits on sale of same after deducting written down value as it stood in books of assessee-Held, yes-Whether no other amount could be taxed in hands of assessee as capital gains, for assets which did not belong to it.\u00a0 The assessee has not filed the return of income therefore, it could not be said that initiation of reassessment proceedings was void ab initio or that approval was given mechanically.\u00a0 the Assessing Officer may later come to a conclusion that grounds on which proceedings were initiated, were not valid, would not vitiate initiation of proceeding because initiation has to be viewed in context of material that was available at that time and whether same could lead to a reasonable inference, that income had escaped assessment. (AY. 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 45 : Capital gains-Property sold by firm-Land was belong to one of the partner-Assessing Officer was required to arrive at figures of amounts realized on sale of assets owned by firm and compute profits on sale of same after deducting written down value as it stood in books of assessee-firm-No return was filed-Reassessment is affirmed. S. 147,148] <\/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-56200","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-eCs","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56200","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=56200"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56200\/revisions"}],"predecessor-version":[{"id":56201,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56200\/revisions\/56201"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=56200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=56200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=56200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}