B N AMARNATH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE petitioner in this writ petition has questioned the correctness of the order passed by the income-tax Officer, Bangalore (Salary Ward No. 3 (3)) dated October 4, 2000, under Section 271 (1) (c) of the Income-tax Act, 1961.

(2.) THE petitioner is an employee in BEML, Bangalore, deriving income mainly from salary. A residential site was allotted to him by the BEML Employees Cooperative Society. The petitioner sold the said site on March 29, 1995, for a valuable sale consideration of Rs. 1,76,000. The assessment of the petitioner for the year 1995-96 was completed under Section 144 read with section 147 of the Income-tax Act ("the Act" for short), on March 23, 2000, determining the total income of Rs. 1,59,884 which is inclusive of long-term capital gain of Rs. 1,27,210.

(3.) SUBSEQUENTLY, notice under Section 274 read with Section 271 of the Act was served on the petitioner on the ground that the assessee failed to disclose the long-term capital gains arising out of the sale of his residential site escaping capital gains for the assessment year 1995-96 within the meaning of Section 147 of the Act. Notice under Section 148 of the Act was issued calling upon the petitioner to file his return. As there was no response from the petitioner, a notice under section 142 (1) of the Act was issued and served on the assessee and there was no response for the said notice also from the petitioner. Finally, one more notice was given on March 22, 2000, and he was called upon to furnish details called for. As there was no response from the petitioner, the assessment was completed under Section 144 read with Section 147 of the Act on march 23, 2000.