Home Income tax Corporate Income tax Madras HC Cancels Reassessment of Agricultural Land Initiate Beyond 4Y After Disclosing ITR

Madras HC Cancels Reassessment of Agricultural Land Initiate Beyond 4Y After Disclosing ITR

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Madras HC Cancels Reassessment of Agricultural Land Initiate Beyond 4Y After Disclosing ITR
Madras HC's Order for Mr S. Uttam Chand

The initiated reassessment has been quashed by the Madras Excessive Courtroom past 4 years on the disclosures of the sale of agricultural land within the earnings return on the time of the scrutiny evaluation.

The applicant’s case, Mr. S. Uttam Chand was that the current discover offered beneath part 147 of the Revenue Tax Act was past the length of 4 years specified within the act because the impugned discover was issued dated 30.03.2021 whereas the difficulty is said to the AY 2013-14.

As per the availability of Part 147, the limitation length is 4 years. In 4 years the respondents are required to reopen the evaluation and if not then beneath the availability of part 147 the respondent must be empowered to re-open within the case when there may be any failure on the taxpayer’s half to indicate the earnings.

When beneath sub-section (3) of Part 143 or this part an evaluation has incurred for the pertinent evaluation yr then no measure can have been chosen beneath the identical part publish the lapse of 4 years length from the end of the associated evaluation yr till any earnings is leviable to tax has fled the evaluation for these evaluation years by the rationale of the failure on taxpayer half to make a return beneath part 139 or in reply to the discover issued beneath subsection (1) or Part 142 or Part 148 or to indicate fully and really all the fabric information required for the evaluation for a similar evaluation yr.

The petitioner’s counsel furnished that the applicant has offered the data earlier than the assessing officer dated 30.01.2016 and 04.02.2016 through offering the copy of the ledger accounts of Kyanallur property buy, a replica of the sale deed of Kyanallur property and a replica of the sale deed of Kyanallur property.

Therefore he shall present that nothing has been hid on the applicant’s half in as a lot as potential he has offered all the data known as through the Assessing Officer(AO). Solely within the case of the failure on the taxpayer’s half to indicate the earnings, as per the availability of part 147 of the Revenue Tax Act, the evaluation may very well be re-opened.

The applicant has declared the info in regards to the sale of the agricultural land and all the actual for the sale of the agricultural land was offered to the assessing officer within the occasion, A Single Bench of Justice Krishnan Ramaswamy famous.

Learn Additionally: Govt Agricultural Land Eligible for Tax Exemption U/S 2(13) for Enterprise

Furthermore, upon reviewing the paperwork offered to this Courtroom, it’s evident that the petitioner has adequately furnished all related particulars. The discover served beneath Sections 148 and 149 of the Revenue Tax Act, geared toward reopening the evaluation for the 2013-14 Evaluation 12 months, lacks justification and ought to be invalidated.

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