COMMISSIONER OF INCOME TAX Vs. ANIL KUMAR SHARMA

JUDGEMENT

(1.) The present is an appeal by the revenue against the order of the Tribunal in ITA No. 2771/Del/2007 pertaining to the assessment year 2003-04.

(2.) The respondent/assessee, an individual had filed its return of income for the relevant assessment year on 25-11-2003 declaring total income at Rs. 1,64,06,770. The assessing officer issued notice under Section 143(2) of the Income Tax Act, 1961 (for short the said Act) to the assessee, calling for information. Thereafter vide assessment order dated 30-9-2005, the assessing officer accepted the return of income submitted by the assessee.

(3.) It is seen from the record that on the proposal of the assessing officer, the learned Commissiner issued a notice under Section 263 of the said Act. The Commissioner noticed that one Shri Ashok Kumar Sharma, resident of 12-DM Block, Saket, New Delhi had received compensation for the land at village Tughlakabad and that the said Ashok Kumar Sharma had transferred 50 per cent of such compensation to the assessee at a sum of Rs. 27,00,000 only, whereas the compensation granted by the Supreme Court in relation to the said land was Rs. 1.82 crores. It was further noticed by the CIT that the TDS deducted on the compensation had also been transferred by the said Ashok Kumar Sharma in the name of the assessee. The CIT came to a conclusion that credit of TDS can be transferred mainly to a person who is acting as agent or representative of the entitled person, and that such issues had not been examined by the assessing officer. The CIT, therefore, came to a conclusion that the order of the assessing officer was erroneous and prejudicial to the interest of the revenue and deserved to be set aside. The assessment ramed was, therefore, reopened under Section 263 of the said Act.