SADHURAM PATEL AND SONS Vs. INCOME TAX OFFICER
INCOME TAX APPELLATE TRIBUNAL
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O.K. Narayanan, Accountant Member -
(1.) THIS appeal is filed by the Assessee. The relevant assessment year is 2001-2002. The appeal is directed against the order of the CIT(A)-XIII at Mumbai, dated 26.7.2007 and arises out of the assessment completed Under Section 143(3) r.w. Section 263 of the Income-tax Act, 1961.
(2.) The assessee-firm is engaged in the business of transportation. It has a substantial block of trucks and trailers as assets. The -assessee-firm filed its return of income for the impugned assessment year declaring a total income of NIL. The assessment was selected for scrutiny and was completed Under Section 143(3) of the Income-tax Act, 1961.
Thereafter the CIT perused the records of the case and found that the assessment has escaped levying of tax on short term capital gains worked out at Rs. 1,00,38,704, and therefore, the assessment was erroneous and prejudicial to the interest of the Revenue. Accordingly, the assessment order was set aside and the Assessing Officer was directed to examine whether the short term capital gains liable for taxation has been omitted or not while completing the original assessment.
(3.) IN compliance of the order of the CIT(A) Under Section 263 of the Act, the Assessing Officer reopened the assessment for the limited purpose of examining and inferring taxability of the transaction relating to short term capital gains. The assessment order was, thus, revised and set aside. IN the set aside assessment, the Assessing Officer treated the sum of Rs. 1,00,38,704 as short term capital gains and brought the same to taxation.;
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