RAJBIR KAUR ATHWAL LEGAL HEIR OF LATE SH. JASBIR SINGH ATHWAL, YAMUNANAGAR,YAMUNANAGAR vs. JAO ITO WARD-3 YAMUNANAGAR THE INCOME TAX OFFICER WARD-2, YAMUNA NAGAR, YAMUNANAGAR

ITA 1821/CHANDI/2025Status: DisposedITAT Chandigarh07 October 2026AY 2010-201113 pages
AI SummaryRemanded

What were the facts?

The assessee, Smt. Rajbir Kaur Athwal (legal heir of Late Sh. Jasbir Athwal), is in appeal against an order dated 24.06.2025 passed by the Commissioner of Income Tax (Appeals), NFAC. This order pertains to assessment year 2010-2011 and arises from an assessment framed by the Assessing Officer (AO) under sections 143 read with 147 on 21.12.2017. The appeal was filed with a delay of 118 days, which the Tribunal condoned due to the assessee being an NRI and the subsequent demise of the original assessee. The AO initiated reassessment proceedings based on the alleged escapement of capital gains on the sale of land in Village Mauja Khera. The assessee had not filed a regular return of income. The AO's reasons for reopening involved discrepancies in the sale consideration and the fair market value of the land as on 01.04.1981.

What did the Tribunal hold?

The Tribunal admitted the additional legal grounds of appeal for adjudication, noting they did not require appreciation of new facts. The Tribunal acknowledged the assessee's arguments regarding the invalidity of reassessment proceedings due to flawed reasons to believe and borrowed satisfaction, referencing various judicial precedents. The assessee also contended that the AO made errors in calculating the sale consideration and the cost of acquisition as on 01.04.1981 in the reasons recorded for reopening. Furthermore, the assessee raised a crucial legal ground that the assessment order was passed against a deceased person. The Tribunal heard arguments from both the assessee's counsel and the revenue's representative. The judgment indicates that the Tribunal would proceed to adjudicate these grounds, but the specific findings and reasoning on each issue, as well as the operative directions, are not fully detailed in the provided excerpt. The excerpt concludes with the AO's rejection of the assessee's claim regarding transfer in AY 2006-07 and the basis for the cost of acquisition.

What were the issues?

1. Whether the reassessment proceedings initiated under section 148 are invalid and liable to be quashed due to the AO forming wrong reasons to believe, as argued by the assessee, citing judgments in M/s Taj Land Developers and Promoters Pvt. and M/s Skycity Builders and Promoters (P) Ltd. The assessee contended that the AO wrongly recorded the sale consideration and adopted incorrect cost of acquisition as on 01.04.1981 in the reasons to believe, leading to an inflated calculation of escaped income. The assessee also argued that the reopening was based on borrowed satisfaction, referencing judgments from the ITAT Chandigarh and Amritsar benches, and the Gujarat High Court. The revenue, represented by the Ld. CIT-DR, supported the assessment framed by the AO. 2. Whether the assessment order deserves to be quashed as it was passed against a deceased person, the assessee having died on 06.11.2023, as argued by the assessee. This legal ground was admitted for adjudication.

Which sections of the Income-tax Act were involved?

Section 143,Section 147,Section 148,Section 151,Section 142,Section 2(45),Section 54B,Section 54F

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI RAJESH DAMODARLAL SHARMA, JM

Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2010-11 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 24.06.2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143 r.w.s. 147 of the Act on 21.12.2017. The registry has noted delay of 118 days, the condonation of which has been sought by Ld.

The order continues below.

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