|The Tax Publishers2021 TaxPub(DT) 0022 (Mad-HC) : (2021) 430 ITR 0419
INCOME TAX ACT, 1961
Since the issue as to whether capital gain was taxable in one year or the other was determined only if the material pertaining to both years were available before the officer, therefore, the re-assessment should be taken up on merits and decided as expeditiously as possible and at any rate within a period of eight weeks from today.
Reassessment - Validity - Determination of year of taxation of capital gain -
The issue was whether the assumption of jurisdiction in terms of Section 147 for assessment year 2012-13 was proper, particularly, seeing as the Officer only proposes a re-assessment, on protective basis. Admittedly, there has been no scrutiny assessment for assessment year 2012-13 and only an intimation had been passed. The issue based on which the re-assessment had been initiated was whether the capital gains offered to tax in assessment year 2016-17 should have been offered in the earlier year, i.e., assessment year 2012-13.Assessee contended that the very income proposed to be brought to tax in assessment year 2014-15, had suffered tax in assessment year 2016-17. The assumption of jurisdiction by AO was challenged on the ground that there existed no valid reasons for the proposed re-assessment and no material on the basis of which the Officer had arrived at the prima facie conclusion that income had escaped assessment. Held: In the present case, the return of income for assessment year 2012-13 was not scrutinized and only the return of income of assessee for assessment year 2016-17 was taken up for scrutiny. The question as to whether the capital gain was assessable in assessment year 2012-13 or 2016-17 was thus, a matter to be decided by the Authorities after due verification of relevant documents and in accordance with the law. In this case, the issue that arose was whether the capital gain was taxable in one year or the other and thus, it was only if the material pertaining to both years were available before the officer that a proper decision in this regard could be arrived at.The re-assessment shall be taken up on merits and decided as expeditiously as possible and at any rate within a period of eight weeks from today.
REFERRED : ACIT v. Rajesh Jhaveri Stock Brokers P. Limited (2007) 291 ITR 500 (SC) :2007 TaxPub(DT) 1257 (SC) Banyan And Berry v. CIT (1996) 222 ITR 831 (Guj) :1996 TaxPub(DT) 0767 (Guj-HC) Hemlata Agarwal v. CIT (1967) 64 ITR 428 (All) :1967 TaxPub(DT) 0234 (All-HC)
FAVOUR : Against the assessee
A.Y. : 2014-15
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