The central legal point established in the judgment is that the conditions stipulated in Section 54 and Section 54F of the Income Tax Act, 1961, stand fulfilled when the property is purchased by the assessee, even if purchased jointly with the spouse, and re-assessment based on change of opinion without new information is impermissible.

JUDGMENT

Manmeet Pritam Singh Arora, J. (Oral) - Present writ petition has been filed seeking direction for setting aside the order dated 28th July, 2022, passed by the respondent under Section 148A(d) of the Income Tax Act, 1961, (the 'Act') and notice dated 28th July, 2022, issued under Section 148 of the Act with respect to the Assessment Year ('AY') 2015-16.

2. Learned counsel for the petitioner states that the facts arising for consideration in the present proceedings are admitted and there is no dispute in this regard. He states that on 25th February, 2015, the property situated at B-83, Defence Colony, New Delhi, ('Delhi Property') comprising of the entire second floor and 50% of the share of the terrace above the third floor along with 20% undivided, indivisible and impartible ownership rights in the said plot of land was sold by the petitioner herein for a sale consideration of Rs. 2 Crores. He states that balance 50% share of the terrace above the third floor which was owned by his brother, Sh. Parkash Keshwani, was sold by the said brother for Rs. 5 Lakhs. He states that the sale consideration of Rs. 2 Crores was received by the petitioner and the buyer deducted 1% Tax Deducted at Source (TDS) on the said sale consideration. He states that petitioner declared the receipt of the said amount of Rs. 2 Crores as Long Term Capital Gain ('LTCG') in his Income Tax Return ('ITR') for AY 2015-16. He states that subsequently on 01st June, 2015, the petitioner purchased a new property situated at Sector-31-32A, Gurugram, Haryana ('New Property') for a total consideration of Rs. 2,54,20,000/- jointly with his wife Mrs. Rekha Keswani. He states that the entire sale consideration in respect of the purchase of the New Property was paid from petitioner's bank account. He also states that the stamp duty payable on the sale deed dated 01st June, 2015, was also incurred by petitioner. He states that all the aforesaid transactions are duly recorded in petitioner's bank account statement held with the HDFC Bank.

3. The learned counsel for petitioner states that, thereafter, on 23rd September, 2016, petitioner was issued a notice under Section 143(2) of the Act, wherein, the petitioner was informed that his return has been selected for scrutiny under Computer Aided Scrutiny Selection ('CASS') and the issue of capital gains was a specific issue identified for examination therein. The petitioner responded to the said notice and duly placed before the AO ('Assessing Officer') all the relevant documents including the sale deed pertaining to the sale of the Delhi Property and the purchase of the New Property as well as the HDFC Bank statement. The learned counsel for petitioner states that after consideration of the aforesaid documents, the AO passed an assessment order on 07th November, 2017, under Section 143(3) of the Act by duly taking note that the petitioner had submitted all necessary details and documents. The AO specifically recorded the facts with respect to the deduction claimed by the petitioner under the head of capital gain in the assessment order and no addition or disallowance was made in the return. The relevant extract of the said assessment order reads as under:-

'The whole amount of the sale consideration was reinvested in a residential (house) property in Haryana which was acquired on 26th May 2015 for Rs 2,54,20,000- and stamp duty paid of Rs 15,25,200/. The AR submitted the necessary details and documents from time to time which have been examined and placed on record. Books of accounts have been verified on test check basis and returned.'

4. The petitioner was thereafter served with a notice dated 23rd June, 2021, under Section 148 of the Act wherein it was alleged that the AO has reasons to believe that the petitioner's income chargeable to tax for AY 2015-16 has escaped assessment. The said notice was thereafter deemed to be a show cause notice under Section 148A(b) of the Act following the directions of the Supreme Court