ASSISTANT COMMISSIONER OF INCOME TAX Vs. SHASHIKALA AGARWALA

JUDGEMENT

(1.) THIS appeal by revenue and CO. by assessee are arising out of order of CIT(A) -XIX, Kolkata in appeal No. 88/CIT(A) -XIX/ACIT, Cr -31/09 -10 dated 25.06.2010. Assessment was framed by ACIT, Circle -31, Kolkata u/s. 147 r.w.s. 143(3) of the Income -tax Act, 1961 (hereinafter referred to as "the Act") for Assessment Year 2003 -04 vide his order dated 15.12.2009.

(2.) THE only issue in this appeal of revenue is against the order of CIT(A) quashing the reassessment framed by AO u/s. 147 r.w.s. 143(3) of the Act. For this, revenue has raised following two grounds:

(3.) SUBSEQUENTLY , notice u/s. 148 of the Act dated 26 -08 -2008 was issued. By a letter dated 24 -10 -2008, the assessee made a request for communicating the reasons recorded for initiating proceeding u/s. 147 of the Act. Such reasons were communicated in 2009. From the perusal of which it appears that the proceeding u/s. 147 of the Act have been initiated by the AO for the reasons that it is found that during the relevant previous year, the assessee transferred, by way of sale, plots of land at a price of Rs. 66.40 lacs, but this transfer was not considered at the time of assessment proceedings and that income is chargeable to tax under the head capital gains. But it was explained that in respect to sale of property the AO while making the assessment u/s. 143(3) of the Act originally had made detailed enquiries and had obtained all the necessary details and particulars including copies of agreement dated 07 -04 -1988 (wrongly mentioned by the AO as 07 -04 -1998 in original assessment order and also wrongly mentioned by CIT(A) also) and agreement dated 01 -04 -02 together with copies of Deed of sale and balance sheet and also copy of ledger account of Falakata Industries Ltd. etc, as is evident from 2nd para of page -2 of the assessment order dated 10 -11 -2005. Before completion of assessment u/s. 143(3) of the Act, the AO made necessary enquiries and in this connection a detailed reply was submitted before him vide letter dated 18 -10 -2005. From this letter dated 18 -10 -2005 it is clear that AO had obtained a detailed reply together with copies of agreements. The assessee's letter dated 10.10.2005 is being reproduced as under: