S HARNAM SINGH SURI Vs. CENTRAL BOARD OF DIRECT TAXES
HIGH COURT OF DELHI
S.HARNAM SINGH SURI
CENTRAL BOARD OF DIRECT TAXES
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M.L.JAIN, J. -
(1.)In the year 1964, the petitioner Harnam Singh Sun purchased a plot of land No. l/30, Punjabi Bagh, Delhi, on which he later on constructed a house. On 17-1-1972, he filed an income-tax return for the year 1971-72. In the accompanying statement, he stated that the said house was self- occupied and was sold on 15-1-1971. "The capital gain out of the sale was Rs. 1,31,884 which was utilised for purchase of a residential flat in Asha Deep on 18-1-1971. So in column 5 of the return under the caption 'capital gains' he entered the word 'none'. In the verification, the petitioner solemnly declared that to the best of his knowledge and belief the information given in the return and the annexures and the statement accompanying it is correct and complete and the amount of total income and other particulars shown are truly stated. In the course of assessment proceedings, the petitioner filed an affidavit on 18-2-1972 staling inter alia that prior to its sale, he was living in the house for more than two years. The Income-tax Officer by his assessment order dated 6-3-1972 completed the assessment. No tax on capital gains was levied on account of the aforesaid statement in virtue of section 54 of the Income-tax Act, 1961 (herein the Act).
(2.)In August, '1972, there was a search under section 132 of the Act of several personal premises and of the companies with which the petitioner was associated. One Shri S. D. Kapila, an Income-tax Officer, visited the Punjabi Bagh premises and recorded the statement of the petitioner on 18-8-1972 under sec. 132(4) of the Act. He stated that he had begun construction some three or four years back. From that statement it further appeared that the house was incomplete and uninhabitable and that the petitioner did not live in the aforesaid premises for a period of two years and that the flat purchased by him was also not occupied by him, but he gave it to his son Harpal Singh for his residence.
(3.)Then, on 19125-9-1972, the Income-tax Officer issued notice under section 148 of the Act reopening the assessment for 1971-72. The notice was received by the petitioner on 28-9-1972.
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