Reassessment notice u/s.148 valid if AO's information at issuance time shows escaped income likely exceeding Rs.50 lakhs threshold u/s.149(1)(b), even if later reduced; subsequent quantification does not quash proceedings. (28 words)

ORDER

PER VIKRAM SINGH YADAV, A.M :

These are four appeals filed by the assessee against the respective order(s) of the Learned Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi [„Ld.CIT(A)‟], pertaining to Assessment Year (AY) 2016-17. All these appeals were heard together and are being disposed-off by this consolidated order.

2. At the outset, it is noted that there is a delay in filing these appeals as pointed out by the Registry. After hearing both the parties and perusing the facts placed on record, we find that there was reasonable cause for the delay in filing the present appeals and hence, the delay is hereby condoned and appeals are admitted for adjudication.

3. Firstly, we take up appeal of the assessee in ITA No. 6323/Mum/2025 wherein, briefly stated, facts of the case are that the assessee, an individual did not file any original return of income u/s. 139 of the Income Tax Act, 1961 („the Act‟). Subsequently, based on information that the assessee has sold certain immoveable property, a show cause u/s. 148A of the Act was issued on 15-02-2023. In response to show cause, there was no compliance on the part of the assessee and thereafter, the AO passed the order u/s. 148A(d) of the Act dt. 19-03-2023, after seeking approval u/s. 151 of the Act, dt. 17-03-2023 from the Competent authority and simultaneously, notice u/s. 148 of the Act was issued on 19-03-2023. Thereafter, notices and show cause were issued, however, there was again no compliance on the part of the assessee and basis information that the assessee has sold immoveable property for a consideration of Rs. 60 lakhs and in absence of any information/details submitted by the assessee, the said amount was brought to tax by the AO as Short Term Capital Gain and assessed income was determined at Rs. 60 lakhs vide order passed u/s. 147 r.w.s. 144 r.w.s. 144B of the Act, dt. 12-02-2024.

4. The assessee thereafter carried the matter in appeal before the Ld.CIT(A) and the Ld.CIT(A), after considering the facts and circumstances of the case, directed the AO to allow indexed cost of acquisition and exemption u/s. 54F of the Act and the AO was directed to compute the net Long Term Capital Gain at Rs. 25,45,973/- and the appeal of the assessee was partly allowed and against the said order, the assessee is in appeal before us.

5. During the course of hearing, the Ld.AR submitted that for seeking approval u/s. 151 of the Act from PCCIT, the quantum of income which has escaped assessment was reported at Rs. 1,20,00,000/- as against the amount of sale proceeds of Rs. 60 lakhs and accordingly, the approval was obtained by stating wrong facts. It was further submitted that post receipt of approval, the AO proposed re-assessment for consideration of Rs. 60 lakhs as income on sale of immoveable property which has escaped assessment and cost of acquisition, cost of improvement, transfer expenses, interest cost of loan taken, exemption on account of reinvestment etc. were not considered and the entire sale proceeds were considered as income e