RAMPAL SAMDANI Vs. UNION OF INDIA

JUDGEMENT

(1.) The instant writ petition has been preferred by the petitioner Rampal Samdani under Article 226 of the Constitution of India for assailing the reassessment notice (Annexure-5) dtd. 30/3/2021 issued under Sec. 148 of the Income Tax Act, 1961 for the Assessment Year 2013-14 and the notice (Annexure-7) dtd. 17/6/2021 issued under Sec. 143(2) read with Sec. 147 of the Income Tax Act for the same assessment year.

(2.) Brief facts relevant and essential for disposal of the writ petition are noted herein below: The petitioner did not furnish his return of income for the Assessment Year 2013-14 for the reason that he was having income lower than the basic exemption limit prescribed under the Income Tax Act and Rules. A notice dtd. 8/4/2016 issued by the ITO Ward No.3, Chittorgarh was received by the petitioner proposing to initiate assessment proceedings under Sec. 147 of the Income Tax Act. While complying with the said notice, the petitioner filed return of the income in the prescribed format on 9/5/2016 and declared his income for the said assessment year i.e. 2013-14 as Rs.45,000.00. While declaring his income in the return, the petitioner claiming loss of Rs.2,21,429.00 on the sale of a residential property located at Ambe Vihar Colony, Chittorgarh. On receiving this return of the petitioner, a notice dtd. 24/5/2016 under Sec. 143(2) of the Income Tax Act was served to him seeking further information with regard to certain points in connection with return of income submitted on 9/5/2016. The petitioner was also required to appear before the ITO, Chittorgarh and to furnish information regarding the registered sale deed; all connected bank accounts details and documents pertaining to the claim of expenses and losses in return of income. The case of the petitioner was taken up for scrutiny assessment and notice dtd. 7/2/2017 under Sec. 142(1) of the Income Tax Act was served upon him In response, the petitioner appeared before the ITO, filed written submissions and furnished all requisite details alongwith supporting documents. The Long Term Capital gain tax and total income of the petitioner for the Assessment Year 2013-14 was computed as Rs.1,04,591.00 and an order under Sec. 156 of the Income Tax Act was issued on 26/4/2017 indicating that the petitioner was required to pay 'NIL' amount towards income tax. The assessment order dtd. 26/4/2017 and the notice under Sec. 156 of the Income Tax Act have been annexed with the writ petition as

(3.) The respondents have filed reply to the writ petition wherein, the submissions made by the petitioner have been controverted It has been asserted that the claim of loss towards Long Term Capital gains set out in the previous return of the petitioner was found to be incorrect and thus, the re-assessment notice was rightly issued. A particular instance has been given that claim for expenses on account of construction of boundary wall on the land in question is contradicted by the valuation made by the SubRegistrar in the sale deed.