NEERAJ KANTA VERMA Vs. UNION OF INDIA

JUDGEMENT

(1.) IN this group of writ petitions, the petitioner has challenged the validity and legality of the notices issued under Section 148 of the Income Tax Act for the assessment years 1997 -98, 2000 -01 and 2001 -02.

(2.) THE facts leading to the filing of the writ petition is, that the father of the petitioner was the original lessee of Nazul land (Site F) Civil Station at Allahabad since 1958 situate at 46, Lal Bahadur Shastri Marg, Allahabad. In the lease deed registered on 29th December, 1972, the lessee was permitted to transfer by succession, sale, assignment, etc. with the previous approval of the State Government. The father of the petitioner, Sri S.K. Verma retired as the Chief Justice of the Allahabad High Court and died on 9th May, 1988. Upon his death, a memorandum of partition was executed between Smt. Nirmala Verma, widow of Sri S.K. Verma and three sons. Based on this family partition, an application was filed before the Collector, Allahabad for the division of the lease deed. This application was forwarded to the State Government. The State Government granted permission for the execution of the lease deed in favour of the heirs of Sri S.K. Verma on the same terms and conditions. As a consequence thereof, fresh and separate lease deeds on the same terms and conditions were executed on 3rd February, 1996 in favour of the heirs of Sri S.K. Verma.

(3.) FOR the assessment year 1997 -98, Smt. Nirmala Verma filed her return on 17th May, 1997 disclosing the premium paid for conversion of lease land into free hold and also disclosing the sale of land to a third party. Smt. Nirmala Verma also filed a chart showing the computation of capital gains tax liability upon the transfer of the land which is reflected in the return. The said return was accepted by the issuance of the acknowledgement of the return by the authorities on 19th February, 1997.