KEKI BOMI DADISETH Vs. ASSISTANT COMMISSIONER OF INCOME TAX
LAWS(BOM)-2017-3-258
HIGH COURT OF BOMBAY
Decided on March 15,2017

KEKI BOMI DADISETH Appellant
VERSUS
ASSISTANT COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

M.S.SANKLECHA,J. - (1.) This petition under Article 226 of the Constitution of India challenges a notice dated 29th March, 2016 issued by the Assessing Officer under section 148 of the Income Tax Act, 1961 (the Act). By the impugned notice the Assessing Officer seeks to re-open an assessment for the Assessment year 2009-10.
(2.) The reasons recorded in support of the impugned notices and communicated to the petitioner reads as under: "Information has been received in this office that the above mentioned assessee has sold property in Mumbai to Shaina N, Chudasana, PAN AAAPC6147D during the F.Y. 2008-09 relevant to A.Y. 2009-10 for a consideration of Rs. 1,90,00,000/-. However, the market value of the same property was Rs. 3,22,52,500/-. Therefore, the provisions of section 50C of the Income Tax Act, 1961, are clearly attracted in this case. After verifying Income Tax Return details of the assessee it is conclusively proved that the assessee has understated income in the returns of income for A.Y. 2009-10, amounting to Rs. 1,32,52,500/- On the basis of aforesaid information, available records with me and after duly applying my mind, I have reasons to believe that income chargeable to tax, as indicate above, to the tune of Rs. 1,32,52,500/-, or any other income chargeable to tax which comes to my notice subsequently in the course of proceedings for re-assessment, has escaped assessment for A.Y. 2009-10 within the meaning of section 147 of the IT Act, 1961."
(3.) The petitioner filed his objections to the aforesaid reasons in support of the impugned notices. The objections filed were twofold as under: - (i) That the capital gain on account of sale of tenancy/leasehold rights arose in the Assessment year 2008-09 and not in the subject Assessment year 2009-10. This was evident according to the petitioners as Rs. 1.90 crores was offered as capital gains tax in its return of Income for the Assessment Year 2008-09. (ii) Section 50C of the Act which is being invoked in respect of transfer of tenancy / leasehold rights would have no application as it applies only to sale of land or buildings and not leasehold rights. ;


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