PR. COMMISSIONER OF INCOME-TAX Vs. HEMA KRISHNAMURTHY

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 revenue. The subject matter of the appeal pertains to the Assessment year 2005-06. The appeal was admitted by a bench of this Court vide order dated 25.10.2017 on the following substantial questions of law:

(2.) Facts leading to filing of this appeal briefly stated are that the assessee is an individual who filed income tax return for the Assessment Year 2005-06 on 20.07.2005 declaring an income of Rs.2,20,829/- under the head income from salary, house property and other sources. The return was processed under Section 143(1) of the Act. Thereafter, annual information return information was received by the department that the assessee has sold immovable properties and the return of income did not reflect the details of the same. The Assessing Officer thereafter re opened the case by issuance of notice under Section 148 of the Act. The assessee filed the reply requesting the Assessing Officer to treat the return of income filed on 20.07.2005 as one filed in response to the notice under Section 148 of the Act. The Assessing Officer passed an order of assessment dated 15.12.2010 under Section 143(3) read with Section 147 of the Act and held that the assessee is entitled to deduction under Section 54F of the Act and did not have any income which escaped assessment. The return filed by the assessee was accepted.

(3.) The Commissioner of Income Tax invoked powers under Section 263 of the Act and concluded the same and passed an order on 21.02.2013 and set aside the order passed by the Assessing Officer. A direction was issued to the Assessing Officer to re do the order of assessment and pass a fresh order of assessment. The assessee thereupon filed an appeal before the Income Tax Appellate Tribunal (hereinafter referred to as 'the tribunal' for short), which was allowed by the tribunal by an order dated 31.07.2015. In the aforesaid factual background, the revenue has filed this appeal.