1.

Reasons for selection of the Case and type of case and background facts:-

In the case of the assessee there has been information available for the A.Y. 2016-17 with the
Jurisdictional Assessing Officer through Insight Portal of the Department in accordance with the Risk
Management Strategy formulated by the CBDT. The case of the assessee has been identified as Non-
Filer with potential tax liability as the assessee involved in certain financial transactions listed hereunder
during the F.Y. 2015-16 relevant to the AY 2016-17 and the assessee did not file ITR for A.Y 2016-17

S Information Source Transaction Amount

Sr.No.
1. Purchased immovable property valued SUB REGISTRAR OFFICE 40,00,000/-
at Rs. 30,00,000 or more OULGARET
2. Deposited cash of Rs. 10,00,000 or ORIENTAL BANK OF 22,00,000/-
more in a saving bank account COMMERCE

Therefore, by following the procedure laid down under section 148A of the Income-tax Act, 1961 an
order under section 148A(d) of the Income-tax Act, 1961 has been passed in the case of the assessee on
29.03.2023 and notice under section 148 of the Income-tax Act, 1961 has been issued to the assessee on
29.03.2023. Accordingly, the case of the assessee for the assessment year 2016-17 has been taken up
for scrutiny under section 147 of the Income-tax Act, 1961.

2. Details of opportunities given and response received:

Type of Date of Date of Response of Date of Response Remarks, if any

notice/communica notice/com compliance the assessee response, if type
tion munication given received/not received (Full/part/adj
received ournment)
Notice u/s 148 29/03/2023 29/04/2023 Not Received - - -
Notice under 02/08/2023 16/08/2023 Not received - - -
section 142(1)
Notice under 27/10/2023 02/11/2023 Not received - - -
section 142(1)
Non-compliance 03/11/2023 Five Days Not received - - -
letter
Show Cause Notice 09/11/2023 15/11/2023 Not received - - -
under section 144
Centralized 26/10/2023 Immediately Not received - - -
Communication

3. Variation proposed - Yes

3.1 Complete description of issues involved:-

The assessee had not filed the ITR for the A.Y. 2016-17 u/s 139(1) of the Act but he has Sold immovable
property valued at Rs.76,26,000/-.
3.2 Synopsis of all submission of the assessee relating to the issue and indicating the dates of
submission

Details of the opportunities afforded to the assessee to file return for the assessment year 2016-
17 and thereafter for filing the reply with regard to the transactions of sale of property entered into by
the assessee has been given above but the assessee have remained non-responsive; as no return under
section 148 of the Income-tax Act, 1961 has been filed and no reply to the questionnaire issued has
been filed. As such, during the course of assessment proceedings, the assessee did not file any response
to the notice as well as communications issued both electronically and manually. Thus the assessment in
this case for the assessment year 2016-17 is proposed to be completed on the basis of information
available on record on the following lines.

3.3 Summary of information / evidence collected which was used for proposed assessment:-

The assessee had sold immovable property for an aggregate consideration of Rs. 76,26,000/-.
The transactions of transfer of immovable property have been executed in the office of the Sub
Registrar No. 2, Nagpur City.

3.4 Synopsis of reply of the assessee to SCN and point-wise rebuttal:-

The assessee did not filed any reply to the Show cause notice.

3.5 Summary of information evidence collected after SCN (if any):- N/A

3.6 Point-wise rebuttal of reply of the assessee including analysis of any case law relied upon:

The assessee was asked to file the copies of the sale-deed executed by the assessee in favour of
purchaser and also to file the parent deed (the deed executed in the assessee’s favour in respect of the
properties which have been sold) along with the computation of capital gains. But, no reply was received
from the assessee.

As the assessee remained non responsive during the assessment proceedings and no details
regarding cost of acquisition and date of acquisition of the above said properties has been provided by
the assessee which have been transferred for a consideration of Rs. 76,26,000/- during the period
01/04/2015 to 31/03/2016. Therefore, it is assumed that the property transferred by the assessee is
short term capital asset within the meaning of section 2(42A) of the Income-tax Act, 1961 and is
chargeable to tax under the head capital gain under section 45 of the Income-tax Act, 1961 which is to
be computed under section 48 of the Income-tax Act, 1961. Cost of acquisition is also taken as nil in the
absence of any reply from the assessee. Accordingly the short term capital gain is computed at Rs.
76,26,000/- which is computed as under:

1 Sale consideration received Rs. 76,26,000/-

2 Cost of acquisition Rs. Nil
 3 Short Term Capital Gain Rs. 76,26,000/-

3.7 Conclusion drawn:-

Keeping in view of the above, Amount of Rs. 76,26,000/- is proposed to be assessed as the
assessee’s income from capital gains under the head short term capital gain and to be taxed accordingly
as per provisions of the Income-tax Act, 1961 along with initiation of penalty under section 271(1)(c) of
the Income-tax Act, 1961 for concealment of particulars of income. Total income is proposed to be
computed as under:

Sr. NO. Particulars Amount (Rs.)

1. Income returned as per ITR filed u/s 148 Nil
2. Short term Capital Gain 76,26,000
3. Total Income 76,26,000

Total income proposed to be assessed at Rs. 76,26,000/- u/s 147 r.w.s. 144B of the Act.

Interest will be charged as per provisions of the Income-tax Act, 1961 along with initiation of penalty
under section 271(1)(c) for concealing the particulars of income.

Penalty u/s 271(1)(b) for not responding to the notices u/s 142(1) of the I.T. Act, 1961

Penalty u/s 271F of the Income Tax Act, 1961 for not furnishing the return of income u/s 139(1) of the
Act as the returned income was more than the basic exemption limit as provided under the provisions of
the Income Tax Act, 1961.