- (1.) The revenue is in an appeal against an order of the Income Tax Appellate Tribunal dated 30 January 2014 under Section 260A of the Income Tax Act, 1961. The assessment year to which the appeal relates is AY - 2009-10.
(2.) The Tribunal has allowed the appeal filed by the assessee on the ground that the basis for issuing a notice under Section 148 for reopening the assessment has not been fulfilled since the Assessing Officer must have reason to believe that income has escaped assessment.
(3.) The following questions of law have been formulated by the revenue: "1. Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in quashing the re-opening of assessment by ignoring the fact that the Assessing Officer had sufficient reasons for re-opening the case and accordingly assessing the long term capital gains at Rs.72,99,290/-, against the returned long term capital gains of Rs.1,72,075/-, which has also been confirmed by the CIT (Appeals)-II, Kanpur vide his order dated 13.03.2013. 2. Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in law in not appreciating the fact that the AO had valid reasons to believe that there is escapement of income by the assessee who vide his return of income had shown highly inflated cost of construction and improvement. 3. Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in not appreciating the fact that the value of property, decided by Civil Judge, Kanpur at Rs.1 lac as per the Court decree dated 15.12.1994, was rightly adopted by the A.O. 4. Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in not appreciating the fact that the assessee during the course of assessment proceedings failed to produce evidence regarding cost of construction and improvement as claimed by him in his return income.";