Law:

Section:

Section 147(a) of the Income-tax Act, 1961 - Reassessment - Non-disclosure of primary facts - Petitioner owned a house in which he made substantial alterations and later sold it in 1980 - For assessment year 1931-83, the assesses showed long-term capital gain derived from sale of house treating cost of alteration as part of cost of acquisition of house - In course of assessment proceedings he furnished necessary details and satisfied ITO about alterations - Internal audit objected that expenses relating to development of property had not been disclosed and as such capital gains had escaped assessment - Thereupon ITO issued notice to assessee under section 148 - Whether in view of fact that all details had been disclosed during original assessment proceedings, there was no non-disclosure of primary facts by assessee - Held, on facts, yes Section 147(b) of the Income-tax Act, 1961 - Reassessment - Information - Whether in view of facts under the caption 'Reassessment - Non-disclosure of primary fact', audit note in instant case did not constitute information - Held, yes Facts The assessee sold a building owned by him on 24-9-1980. In the assessment year 1981-82, he showed long-term capital gain. In the course of the assessment proceedings for this year, the assessee satisfied the ITO about the cost of additions and alterations carried out in the financial year 1967-68 by furnishing the necessary details and the relevant passbook to substantiate the cost of said additional construction. The ITO completed the assessment accepting the assessee's computation of capital gains. On internal audit's objections that necessary information in respect of expenses on the development of the house property was not disclosed, as a result of which capital gains chargeable to tax escaped assessment, the ITO issued a notice under section 148, read with section 147(b), and reopened the assessment for the assessment year 1981-82. On writ, the assessee urged (i) that the internal audit, on whose objection the reassessment was made, could not have constituted an information, and (ii) that as all details had been disclosed at the time of original assessment, which was clearly evident…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492