The initiated reassessment has been quashed by the Madras High Court beyond 4 years on the disclosures of the sale of agricultural land in the income return at the time of the scrutiny assessment.
The applicant’s case, Mr. S. Uttam Chand was that the present notice provided under section 147 of the Income Tax Act was beyond the duration of 4 years specified in the act as the impugned notice was issued dated 30.03.2021 while the issue is related to the AY 2013-14.
As per the provision of Section 147, the limitation duration is 4 years. In 4 years the respondents are required to reopen the assessment and if not then under the provision of section 147 the respondent needs to be empowered to re-open in the case when there is any failure on the taxpayer’s part to show the income.
When under sub-section (3) of Section 143 or this section an assessment has incurred for the pertinent assessment year then no measure will have been chosen under the same section post the lapse of 4 years duration from the finish of the related assessment year until any income is leviable to tax has fled the assessment for these assessment years by the reason of the failure on taxpayer part to make a return under section 139 or in answer to the notice issued under subsection (1) or Section 142 or Section 148 or to show completely and truly all the material facts required for the assessment for the same assessment year.
The petitioner’s counsel furnished that the applicant has provided the information before the assessing officer dated 30.01.2016 and 04.02.2016 via providing the copy of the ledger accounts of Kyanallur property purchase, a copy of the sale deed of Kyanallur property and a copy of the sale deed of Kyanallur property.
Hence he shall provide that nothing has been concealed on the applicant’s part in as much as possible he has provided all the information called via the Assessing Officer(AO). Only in the case of the failure on the taxpayer’s part to show the income, as per the provision of section 147 of the Income Tax Act, the assessment could be re-opened.
The applicant has declared the data concerning the sale of the agricultural land and all the particular for the sale of the agricultural land was provided to the assessing officer in the event, A Single Bench of Justice Krishnan Ramaswamy noted.
Read Also: Govt Agricultural Land Eligible for Tax Exemption U/S 2(13) for Business
Moreover, upon reviewing the documents presented to this Court, it’s evident that the petitioner has adequately furnished all relevant details. The notice served under Sections 148 and 149 of the Income Tax Act, aimed at reopening the assessment for the 2013-14 Assessment Year, lacks justification and should be invalidated.
| Case Title | Mr. S. Uttam Chand |
| Citation | W.P. No.6921 of 2022 |
| Date | 06.11.2023 |
| Petitioner | Mr.Srinath Sridevan, Jyotsna Sivakumar |
| Respondents | Mr.B.Ramana Kumar |
| Madras High Court | Read Order |
