Special Civil Application No. 1312 of 2014. Case: Dhruv Parulbhai Patel Vs Assistant Commissioner of Income Tax. High Court of Gujarat (India)
| Case Number | Special Civil Application No. 1312 of 2014 |
| Counsel | For Appellant: Manish J. Shah, Adv. and For Respondents: K.M. Parikh, Adv. |
| Judges | Akil Abdul Hamid Kureshi and Sonia Gokani, JJ. |
| Issue | Income Tax Act, 1961 - Sections 143(3), 54, 54E |
| Citation | 2014 (223) TAXMAN 415 (Guj) |
| Judgement Date | April 01, 2014 |
| Court | High Court of Gujarat (India) |
Order:
Akil Abdul Hamid Kureshi, J.
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Petitioner has challenged notice for reopening dated 25.3.2014 as at Annexure-H to the petition in the following factual backgrounds:-
The petitioner as an individual, for the assessment year 2008-09 filed his return of income on 3.3.2009 showing total income of Rs. 4,43,830/-. During the period relevant to the assessment year, the petitioner had sold a residential property and claimed exemption under section 54 of the Income-tax Act ("the Act" for short). Amount which remained unutilized was deposited by the petitioner with the State Bank of India as under:--
(a) SBI Capital Gains Savings Bank Account Rs. 2,00,000/-
(b) SBI Capital Gains Deposit Scheme Rs. 37,00,000/-
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Assessing officer undertook scrutiny of the return. During the course of assessment, various queries were raised by the Assessing officer and replied by the petitioner. Eventually, the Assessing officer passed an order of assessment dated 20.8.2010 making no additions to the total income of the assessee. In the body of the assessment order, he noted that the assessee had derived income from salary, from house property, profit from the firm as also capital gain. It is this scrutiny assessment the respondent desired to reopen for which impugned notice within the period of 4 years from the end of relevant assessment year came to be issued. The petitioner was supplied the reasons recorded by the Assessing officer for issuing such notice with reasons read as under:--
In this case, you have filed its return of income on 03.03.2009 declaring total income of Rs. 4,43,830/-. Further, assessment order u/s. 143(3) of the Act was finalized in the case on 20.08.2010 determining total income at Rs. 4,43,810/-. Verification of case record of your revealed and your income from and capital gain and was allowed exemption of capital gain income under section 54E of the Act. For Rs. 37,00,000/- invested in State Bank of India term deposit for 40 days up to 366 days i.e. for less than three years. As per provision quoted above you are not entitled to get exemption for investment less than three years.
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The petitioner raised detailed objections under communication dated 18.9.2013. In such communication he pointed out that his claim for exemption from payment of capital gain was under section 54 of the Act and not 54E. The Assessing officer, therefore, in the reasons recorded has made wrong reference to the said section.
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The objections of the...
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