ORDER

Per: Udayan Dasgupta, J.M.:

This appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC dated 28/06/2023, for the Assessment Year 2012-13, which has arisen out of the order of the AO passed u/s 143(3) / 147 of the Act, 1961, dated 29/12/2018.

The grounds taken by the assesee in revised form 36, are as follows:

“1. That learned CIT(A) has arbitrarily upheld initiation of reassessment proceedings on the basis of recorded reasons of judicial precedent which did not exist at the time of initiation and thus proceedings are illegal and void ab initio

2. That learned CIT(A) has wrongly upheld invocation of section 50C to sale of leasehold rights in land & building.

3. That the appellant was not allowed sought opportunity of hearing through video conference.

4. That appellant craves leave to add any other ground before the honourable bench.”

Brief facts emerging from records are that the original return filed by the assessee u/s 139(1) on 15th September, 2012, disclosing returned income at Rs. 19.52 lakhs ( plus LTCG on sale of land Rs. 34.15 lakhs ) , was selected under CASS for scrutiny on issues relating to interest expenses connected to exempted income ( u/s 14A) and on account of capital gains disclosed in ITR being less than sale of property reported in AIR, and after necessary verification and examination of documentary evidences and submissions filed by the assessee the assessment was eventually completed with additions u/s 36(1)(iii) on account of disallowing interest claim , additions u/s 37(i) disallowing indirect expenses and separate addition on account of machinery scrap.

Thereafter, on the basis of information received by the AO of the assessee ( Circle – II , Bhatinda ) from the ITO – ward 1(1) Bikaner dated 25th July, 2017, that the stamp duty value of the asset sold by the assessee (being lease hold land and buildings) at Bikaner, during the year ( under appeal ) has been determined at Rs.3.80 crores, by the sub registrar, Bikaner, against which it was found that the assessee has disclosed an amount of Rs. 1.95 crores as sale proceeds of lease hold asset in ITR, being the deed value, explanation was sought from the assessee vide notice dated 09/05/2017, against which the assessee responded on 31st May, 2017, claiming that since the asset sold was lease hold, the provisions of section 50C was not applicable to lease hold assets transferred.

(The information from ITO, Bikaner is reproduced):

Thereafter, taking into cognizance the reply of the assessee, the case was reopened vide notice u/s 148 dated 08th July, 2017 (after necessary approval from higher authorities) in response to which the assessee filed return on 17/08/2017, copies of recorded reasons obtained and objections duly filed and disposed off, before proceeding with the reassessment.

The reasons as recorded for reopening are as under:

Return of income was filed by the assessee for the A.Y 2012-13 on 15.09.2012, declaring an income of Rs 53,68,282/-. Regular assessment in the case was framed u/s 143(3) on 29.12.2014 at an income of Rs 89,56,690/- As per information available with this office, the assessee transferred a capital asset comprising of industrial Plot Nos. E-39 to E-42 at Bikaner on 19.03.2012 for apparent consideration of Rs 1.95 crore. However, the Stamp Valuation Authority Le. Sub Registrar, Bikaner adopted/assessed value of such capital asset at Rs. 3,80,33,461/- for the purpose of payment of stamp duty in respect of such transfer. As such, full value of consideration for the purpose of section 48 of the Act was deemed to be Rs. 3,80,33,461/-as provided u/s 50 C of the Act. The assessee, vide this office letter dated 09.05.2017 was required to explain as to how full value of consideration as provided u/s 50C of the Act was disclosed in the return of income of income filed by it in this office on 15.09.2012 or during the course of assessment proceedings for the A.Y 2012-13. The assessee