GOVERNMENT OF INDIA
MINISTRY OF FINANCE
INCOME TAX DEPARTMENT
*ITBA100060051462*
1. PAN BEIPJ5258J
2. Name of the assessee JAGDISH
3. Address of the assessee AGANBADI KE PASS, NAYA NOHRA
KOTA, KOTA 324001, Rajasthan, India
4. Assessment Year 2018-19
5. Status INDIVIDUAL
6. Residential Status Resident
7. Date of service of Notice under section 143(2) As per Order Sheet
of the Income-tax Act
8. Date(s) of issue of Notice(s) under section 06/01/2023,24/01/2023,07/02/2023
142(1) of the Income-tax Act
9. Order passed under section 147 read with section 144B of the Income-
tax Act
10. Date of Order 24/03/2023
11. DIN ITBA/AST/S/147/2022-23/1051217555(1)
ASSESSMENT ORDER
.
.
.
1. Facts of the Case in brief:
The assessee is an individual who has not filed his original return of
income u/s. 139 of the Act. Subsequently, the case was reopened by issue of
notice under section 148 of the Act dated 31.03.2022 on the basis of i
nformation appeared in ITBA and insight portal. Assessee filed return of
income against this notice on 16.01.2023 declaring total income at Rs. 630/-.
As per the information available on Insight portal, assessee has transferred
immovable property for the sale consideration of Rs.49,50,000/- for the year
under consideration. Accordingly, notices were issued to the assessee.
The assessee is farmer having agricultural income and having no other
business activity or any other source of income for the year under
consideration.
Note:- The website address of the e-filing portal has been changed from www.incometaxindiaefiling.gov.in to www.incometax.gov.in.
BEIPJ5258J- JAGDISH
A.Y. 2018-19
ITBA/AST/S/147/2022-23/1051217555(1)
2. Details of opportunities given:
Response
Date of of the Response
Date of Notice/
Type of Notice/ Communication Compliance Assessee Date of
Type(Full/Part/ Remarks
Communication Given received/not Adjournment) if any
Response
received
if received
Notice U/s Not
06.01.2023 16.01.2023 - - -
142(1) Received
Notice U/s Not
24.01.2023 31.01.2023 - - -
142(1) Received
Within 5
Issued Letter 02.02.2023 Received 05.02.2023 Part -
days
13.02.2023
Notice U/s
07.02.2023 14.02.2023 Received and Part -
142(1)
14.02.2023
Show Cause
21.02.2023 27.02.2023 Received 27.02.2023 Part
Notice
VC 16.03.2023 Conducted
3. Cases where variation is proposed:
3.1. Complete description of issues involved (issue wise) –
Sale of Immovable Property:
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BEIPJ5258J- JAGDISH
A.Y. 2018-19
ITBA/AST/S/147/2022-23/1051217555(1)
S.No Transaction Details Amount
01. Sold of immovable property registered with Rs.49,50,000/-
Sub-Registrar-1 Kota.
02. Deposits through cash and bearer cheques Rs 22,40,500/-
in savings bank account held
with Kota MahilanagrikSahkari Bank Ltd
(Savings A/c
002101001007363)
3.2 Synopsis of all submissions of the assessee relating to the issue and
indicating the dates of submission –
Issue Submission of assessee Date of
relating to issue submission
Sale of Immovable Computation of Total Income, Bank 05.02.2023,
Property Account Statements, Sale and 14.02.2023,
Purchase Agreements, ITR u/s 148, 27.02.2023,
Indexation Chart, Valuation Report,
20.03.2023
Cash Flow Statement, Contract
Agreement, Certificate from Bank etc
3.3 Summary of information evidence collected which proposed to be used against it:
--
4. Variation proposed on the basis of inference drawn
4.1 Synopsis of the reply of the assessee to SCN and additional SCN(if any)-
4.2 Summary of information evidence collected after SCN (if any)-
4.3 Point wise rebuttal of reply of the assessee including analysis of any
Page 3 of 6
BEIPJ5258J- JAGDISH
A.Y. 2018-19
ITBA/AST/S/147/2022-23/1051217555(1)
case law relied upon:
(i) It is seen from the information available that the assessee has sold a
property for Rs. 49,50,000 /- in the relevant financial year and has not filed the
return of income u/s 139(1), thereby not declaring the gains arising out of such
sale. The assessee was given opportunities to explain the relevant details
including the cost of acquisition and the date of acquisition of the property
along with date of sale and copy of the sale deed. From the information
provided by assessee in his reply dated 05.02.202, as per the computation of
income enclosed, it can be seen that with regards to transaction in question
assessee has declared Capital Gains 35,28,425/- from the sale of land after
taking due consideration of indexed cost of acquisition. The veracity of the
claim of the assessee in this regard is duly established based on the purchase
and sale deed provided related to property in question. As against this Capital
Gain, assessee has claimed deduction. u/s. 54B of Rs. 28,26,800/- by way of
purchase of another land at the said cost within prescribed time limit as per the
act. (Assessee has submitted copy of documents related to purchase of this
land).
(ii) In addition, assessee has claimed expenses incurred on the
construction of residential house of Rs. 19,82,200/- for which he has claimed
as deduction. u/s. 54F. Despite the giving several opportunities, assesseee
has failed to provide supporting documents to conclusively establish the fact
that the assessee has constructed new residential house within the prescribed
time period, so as to make him eligible for claiming deduction. u/s. 54F. The
Valuation report provided by the assessee, does not conclusively establish the
date of construction rather it only indicates that assessee has merely done
some renovation and repairs to the existing house which is not eligible for
deduction u/s. 54F. As per assessee’s request a VC was scheduled on
16.03.2023. In this VC assessee reiterated same facts and asked extra time to
produce new materials to validate his contention. Assessee then submitted
new documents on 20.03.2023 which included agreement between assessee
and alleged contractor for the construction of the house. After careful
examination of the new material on record, it was observed that the agreement
is not made on valid stamp paper, it also does not provide any details of
contractor like his address, PAN, Seal/stamp or signature across revenue
stamp. The document appears to be non-genuine and procured as an
afterthought. Also, assessee has failed to provide any bills/vouchers/invoices
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BEIPJ5258J- JAGDISH
A.Y. 2018-19
ITBA/AST/S/147/2022-23/1051217555(1)
related to purchase of materials, payment of contractor fees etc to prove his
claim of construction of new house. Based on these observation, it suffices to
say that material available on record is not sufficient enough to establish
construction of new house out of money obtained after sale of property in
question by assessee. Hence amount of Rs 7,01,625 /- claimed as deduction
u/s 54F is hereby proposed to be disallowed and added back to the income of
the assessee to be taxed in assessee’s hands.
5. Conclusion drawn
Therefore, it is proposed to make the total additions of Rs 7,01,625/- which is
to be added back to the total income of the assessee for the year under
assessment.
6. Final computation of taxable income:
Sl Description Amount (in INR)
No
1 Income as per Return of Income 16.01.2023 630/-
2 Income as computed u/s143(1)(a) 0
3 Variation in respect of disallowance of 7,01,625
exemption claimed under section 54F
added back under the head LTCG
4 Total Income determined as per the 7,02,255/-
above proposal
7. Assessed u/s. 147 r.w.s. 144B of the Act. Penalty Proceedings u/s. 270A
are initiated separately on this issue for underreporting of income.
Computation and Demand notice issued.
Page 5 of 6
BEIPJ5258J- JAGDISH
A.Y. 2018-19
ITBA/AST/S/147/2022-23/1051217555(1)
Assessment Unit
Income Tax Department
Copy to:
Assessee
Assessment Unit
Income Tax Department
Digitally signed by
ASSESSMENT UNIT, INCOME
TAX DEPARTMENT
Date: 24-03-2023 12:00:37 IST
Page 6 of 6
