The Tax Publishers2020 TaxPub(DT) 3888 (Mad-HC) : (2020) 428 ITR 0341 : (2020) 317 CTR 0148 : (2021) 276 TAXMAN 0335

INCOME TAX ACT, 1961

Section 148 Section 147

Reassessment for assessment year 2001-02 had once been made on 30-3-2000 and again on 25-3-2013 in pursuance of Tribunal Order, dated 31-5-2010, whereas reassessment for assessment years 2003-04 and 2004-05 had been initially made on 30-3-2006 and 28-12-2006 respectively, which was very much within limitation under section 149 matter was, therefore, remitted back to the assessing authority to re-examine the whole issue of taxability of the capital gains de novo, including the question of levy of capital gains Tax on sale of flats, the year of taxability and computation of Fair Market Value for computing such tax liability.

Reassessment - Notice under section 148 - Limitation under section 149 -

Assessee, for assessment year 2003-04, did not file any return of income there was a search under section 132. Consequently, after recording reasons under section 148, notice was issued and the re-assessment was completed on 30-3-2006. Against this, the assessee preferred appeal. The First Appeal was dismissed by CIT(A) and the matter was taken up by assessee before the Tribunal and it was contended by assessee that reassessment for assessment year 2001-02 had already become time barred as per section 149 and section 150 did not save the limitation for the assessing authority. Tribunal held the reassessment for assessment year 2001-02 to be time barred. Held: Reassessment for assessment year 2001-02 had once been made on 30-3-2000 and again on 25-3-2013 in pursuance of Tribunal Order dated 31-5-2010, whereas reassessment for assessment years 2003-04 and 2004-05 had been initially made on 30-3-2006 and 28-12-2006 respectively, which was very much within limitation prescribed under section 149. The order of CIT(A) for these three years was passed on 22-7-2008, which was 'subject-matter' of appeal before Tribunal which held reassessment to be time barred by an obvious misreading of section 150(2). The manner in which the various appeals and Miscellaneous Petition have been dealt with by the Tribunal for all the three assessment years in question leaves much to be desired and the change of stand allowed by the Tribunal and later withdrawal of the appeals for assessment year 2003-04 and assessment year 2004-05 under the litigation policy of the CBDT Circular, dated 28-1-2016, had resulted in all this goof up. Therefore, this court was constrained to set aside all the orders passed by the Tribunal for all the three assessment years as also all the orders passed by Lower Authorities also for all these three assessment years, viz., assessment years 2001-02, 2003-04 and 2004-05. Court was dealing with the appeal for assessment year 2001-02 only but since the Tribunal's Order, dated 31-5-2010 for assessment year 2003-04 and assessment year 2004-05 was at the root of the order of Tribunal dated 18-3-2016, by majority of 2:1 for assessment year 2001-02 and Appeal under section 260A against that Order, dated 31-5-2010 already stands withdrawn by revenue, was deemed it appropriate to set aside even the Order, dated 31-5-2010 in the present appeal in these peculiar circumstances. The matter was remitted back to the Assessing Authority to re-examine the whole issue of taxability of the Capital Gains de novo, including the question of levy of capital gains tax on sale of flats, the year of taxability and computation of Fair Market Value for computing such tax liability.

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT

TaxPublishers.in

'Kedarnath', 7, Avadh Vihar, Near Nirali Dhani,

Chopasni Road

Jodhpur - 342 008 (Rajasthan) INDIA

Phones : 9785602619 (11 am - 5 pm)

E-Mail : mail@taxpublishers.in / mail.taxpublishers@gmail.com