B.L. Chhibber, A.M. - (1.) SINCE common issues are involved in all these appeals, the same are consolidated and disposed of by a single order for the sake of convenience. The assessees at Sr. Nos. 3 and 4 are the spouses of Mr. Dominic Dias and Mr. Richard Dias respectively and all the assessees are governed by the Portuguese Civil Code.
(2.) The first common grievance of the assessee is that the learned CIT(A) is not justified in holding that the proceedings under Section 147 of the Act were properly initiated with sufficient ground for issue of notice under Section 148. All the four assessees are co-owners of agricultural land measuring 1,08,000 sq. mtrs. situated at Canacona. The said land was sold to M/s Deeksha Holding Co. (P) Ltd. who purchased the same on 27th Oct., 1994, for a consideration of Rs. 1,69,56,000 for construction of a beach resort. The share of each assessee being Rs. 42,39,000. The assessees had filed returns of income for asst, yr. 1995-96 on 31st Oct., 1995, which were processed under Section 143(1)(a) on 30th Sept., 1996. In these returns, the assessees had not disclosed the income from capital gains from the sale of said land. Accordingly, proceedings under Section 147 were initiated by issue of notice under Section 148 on 30th Sept., 1996, to bring their respective incomes from capital gains to tax. The assessees challenged the action of the AO before the CIT(A) who upheld the action of the AO.
(3.) SHRI D.E. Robinson, the learned counsel for the assessee submitted that the assessees bona fide believed that the population of Canacona was less than 10,000 and the sale made on 27th Oct., 1994 was not liable to capital gains tax for such reason. Therefore, the transaction was not part of the returns of income filed by the assessees for the asst. yr. 1995-96. He submitted that the information on record of the AO or in possession did not indicate that income had escaped the assessment. The learned Departmental Representative relied upon the orders of the authorities below.;