ARUN K THIAGARAJAN Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) This appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act for short) has been preferred by the assessee. The subject matter of the appeal pertains to Assessment year 2003-04. The appeal was admitted by a bench of this Court vide order dated 29.06.2011 on the following substantial question of law:

(2.) The issue, which arises for consideration in this appeal is whether the assessee is entitled to claim exemption under Section 54 of the Act as he had purchased more than two houses. In order to appreciate the factual background, in which the aforesaid issue arises for consideration, reference to relevant facts is necessary, which are stated herein after:

(3.) The assessee was the owner of a residential property situate at Harrington Road Chetpet, Chennai. The said property was sold vide registered sale deed dated 09.10.2002 for a consideration of Rs.2,68,89,375/-. The assessee filed return of income on 09.07.2003 for Assessment year 2003-04 declaring income of Rs.1,68,52,920/-, under the head income from salary, house property, capital gains and income from other sources and paid tax of Rs.49,57,706/-. The assessing officer issued a notice under Section 148 of the Act calling upon the assessee to file the return of income disclosing true particulars of income chargeable to tax. The assessee vide communication dated 31.03.2008 submitted that original return of income be treated as return of income for proceeding under Section 148 of the Act. The assessee also sought for the reasons recorded for issue of notice, which were provided to him on 12.08.2008.