- (1.) THE petitioner has sought to question the legality of a notice issued under Section 148 of the Income Tax Act, 1961 seeking to re -open the assessment for AY 2008 -09.
(2.) AN order of assessment was passed under Section 143(3) on 7 May 2010. The Assessing Officer completed the assessment reflecting a total loss of Rs. 84,28,215/ -.
(3.) A notice under Section 147 of the Income Tax Act was issued to the assessee on 14 March 2014. The notice records that the assessee which was the owner of certain lands had entered into development agreements with M/s. Parsvnath Developers Limited in the financial year 2004 -05 and 2006 -07 for three projects. The agreements, along similar lines, inter alia, provided that for the due performance of its obligation the developer would pay to the assessee an amount of Rs. 1 crore as a refundable/adjustable security deposit. The agreement contemplated a distribution of the sale proceeds in a stipulated proportion. A supplementary agreement was entered into on 28 September 2006 in respect of one project whereas for the other projects there were supplementary agreements dated 14 June 2007 and 11 July 2007. By the supplementary agreement, the parties contemplated that the security deposits would be enhanced and the amount which had been paid would be now treated as non -refundable. Subsequently a survey under Section 133 -A of the Income Tax Act, 1961 was conducted at the premises of the assessee on 9 September 2013. During the course of the survey a letter dated 29 September 2008 from M/s. Parsvnath Developers Limited was impounded. The letter contained a certification of the amount which had been paid to the assessee up to 31 March 2008 towards non -refundable security deposits and the share of the collaborator in respect of three construction projects.;