MAHESH KUMAR GUPTA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) These three writ petitions, were heard together and are being disposed of by a common judgment. Out of all these three petitions two are on behalf of the brothers and the third one is on behalf of their mother. Sri Pyare Lal Gupta was the leaseholder of plot situate at 3 Edmonstone Road, Allahabad (now known as Tashkand Marg Allahabad) under the Government Grants Act, 1985. Lease of the plot expired in the year, 1962 and was renewed on May 7, 1990, for a further period, of thirty years with further renewal's clause. It was renewed in the name of Smt. Rukmani Devi, Sri Yogesh Kumar Gupta, brother, and in the name of the petitioner Mahesh Kumar Gupta. The leasehold rights were subsequently got converted into freehold rights on August 27, 1990. It appears that these persons decided to sell a parcel of the land and they applied for and were granted sanction by the Income-tax Department under section 230A(i) of the Income-tax Act. The parcel of the land was sold for a sum of Rs. 8,25,000 and each petitioner got Rs. 2,75,000 in his share.

(2.) The dispute relates to the assessment year 2000-01 in all these petitions. The petitioners filed returns which were accepted. The further allegation is that the sale consideration was invested in fixed deposit and the UTI Bonds, etc., with which we are presently not concerned.

(3.) The present writ petition arises out of the reassessment notice under, section 148 of the Income-tax Act. The said notice is dated March 23, 2007, for the assessment year 2000-01. In response to the notice the petitioner has filed the return of income and also his/her objections challenging the very initiation of reassessment proceedings on various grounds. The objections having been dismissed by the order dated June 29, 2007, impugned in these petitions.