PADMABEN ZINABHAI TRIVEDI Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) By way of this writ petition, the petitioner has challenged the notice dtd. 30/3/2017 issued by the respondent authority under Sec. 148 of the Income Tax Act, 1961 (for short 'the Act') seeking to re-open the assessment for the Assessment Year (A.Y.) 2010-11.

(2.) The petitioner, during the year under consideration, sold a parcel of land bearing Revenue Survey No. 285, admeasuring 13,626 sq. mtrs. out of total area of 20,200 sq. mtrs., situated at village Bhimpore, Nani Daman to M/s.Perfect Filaments Pvt. Ltd. for a total consideration of Rs.92,65,680.00 vide registered sale deed executed on 24/6/2009. Since, the petitioner owned such property even prior to 1/4/1981, the petitioner obtained a valuation report dtd. 11/11/2009 from a registered valuer, wherein the fair market value of such property as on 1/4/1981 was worked out at Rs.11,03,000.00 (based on Rs.81.00per sq. mtr.). Thereafter, the petitioner filed return of income for the year under consideration on 23/8/2010 declaring total income at Rs.24,31,170.00 including Long Term Capital Gain of Rs.22,94,720.00 on sale of the said land. The petitioner, unfortunately passed away on 21/5/2012. After a period of four years from the end of the relevant A.Y. the respondent issued the impugned notice dtd. 30/3/2017 under Sec. 148 of the Act. The petitioner, vide letter dtd. 17/7/2017, requested the respondent to treat the original return of income as return filed in response to the Notice issued under Sec. 148 of the Act. The respondent, vide letter dtd. 17/5/2017, supplied copy of the reasons recorded for reopening. Thereafter, the petitioner raised objections against reopening contending that there is no escapement of income chargeable to tax and accordingly, the respondent was requested to drop the reassessment proceedings. However, respondent disposed of the objections vide order dtd. 15/9/2017 and held that the reopening of assessment is valid.

(3.) Thus, it is contended that the department lacked the authority to issue the Notice dtd. 30/3/2017 post amendment since as per the decision of the Bombay High Court in the case of CIT vs. Puja Prints, 2014 360 ITR 697 (Bom.) the 2012 amendment was only made effect from 1/7/2012 and the parliament has not given the retrospective effect and hence the provision of Sec. 55A(a) of the Act, will not apply to the transaction amendment. In the present case, the valuation of the sale transaction was done in the year 2009 vide sale deed dtd. 24/6/2009.