CIT Vs. AVTAR SINGH

JUDGEMENT

(1.) The instant appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act ) is directed against the order dated 13-4-2007 passed by the Income Tax Appellate Tribunal, Chandigarh Bench A , Chandigarh (hereinafter referred to as the Tribunal ) in ITA No. 181/Chd/2006 in case of the respondent for the assessment year 1998-99, by raising the following substantial questions of law:

(2.) In the present case, during the course of a search operation at the business premises of M/s Damini Resorts & Builders (P) Ltd., a copy of agreement of sale of land, allegedly entered into by the assessee respondent herein, with said M/s Damini Resorts & Builders (P) Ltd., was found. According to that agreement of sale, the assessee had agreed to sell his share of land situated in village Dhandra for a sum of Rs. 16,42,522. However, subsequently the registered sale deed with regard to the said land was executed only for Rs. 5, 22, 641 by suppressing sale consideration to the tune of Rs. 11,19,920.

(3.) It is the case of the revenue that the assessee did not file return of income in respect of capital gain arising from the aforesaid sale transaction. With the object to bring the said capital gain to tax, the assessing officer issued notice under Section 148 of the Act to the assessee on 30-3-2001. Subsequently, notices under Section 142(1) of the Act were issued, but no return of income was filed by the assessee in response to those notices. Consequently, the assessing officer completed the assessment to the best of his judgment under Section 144 of the Act and assessed the long-term capital gain at Rs. 13,70,680.