Opinion Of Eminent Legal Luminaries On Controversial Issues

Whether Reopening Of Assessment Is Valid Without Any Corroborative Assessment?

QUERY: Whether an A.O. can assess the income in the hands of an assessee buyer u/s. 148 merely because the builder from whom he bought some property 3 years ago has NOW surrendered during search operations the cash (on money) portion as having received from the assessee? Any case laws favouring assessee buyer?
ANSWER: Unless there is corroborative evidence with the Assessing Office that an assessee has paid “cash-on money” to builders, the reopening is not valid. See (i) ITO v. Lakhmani Mewal Das [103 ITR 437 (Sc)]; (ii) Rungta Sons Pvt. Ltd. v. ITO [125 ITR 708 (Cal) and (iii) CIT v. Narinder Nath Parveen Chand [101 ITR 7 (P2H)].

Posted in Income-tax

Leave a Reply

Your email address will not be published. Required fields are marked *


Credit: Several of the queries and answers are reproduced with permission from the AIFTP Journal. We thank AIFTP for generously allowing us to host their research material.
Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org