Assistant Commissioner of Income Tax, Circle – 41(4)(1) v/s. Shri Awadhnarayan Laxminarayan Singh
Parties Involved
Facts Summary
The assessee, Shri Awadhnarayan Laxminarayan Singh, filed a return of income for the assessment year (AY) 2003-04 declaring a total income of Rs. 2,01,648/-. The income was reassessed at Rs. 7,55,11,434/- by the Assessing Officer (AO) under section 143(3) read with section 147 of the Income-tax Act, 1961. The reassessment was based on the finding of the Income-Tax Appellate Tribunal (ITAT) that the income escaped assessment in AY 2003-04 due to a Development Agreement dated 09-10-2002. The AO issued a notice under section 148 on 30-03-2019 and passed an assessment order on 30-12-2019 determining the capital gain at Rs.30,99,88,067/-. The assessee appealed against this order, arguing that the reassessment was barred by limitation under section 149 of the Act.…
Decision in favour of
Revenue
Legal Issues
- 1. Whether the reassessment proceedings initiated for AY 2003-04 were barred by limitation under section 149 of the Income Tax Act.
- 2. Whether section 150(1) of the Act allows initiation of reassessment proceedings beyond the limitation period where such action is required to give effect to a finding or direction contained in an appellate order.
- 3. Whether the earlier finding of the ITAT holding AY 2003-04 as the correct year of chargeability constituted a 'finding' or 'direction' under section 150(1) of the Act.
- 4. Whether the CIT(A) erred in quashing the entire reassessment order solely on the ground of limitation.
Judgment Outcome
Decided in favour of Revenue.
Precedents Relied Upon
6 precedents cited in this judgement.
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