A division bench of the Gujrath High Court by allowing a petition held that re-assessement power could not be exercised for the purpose re-verification.
Assessee, Piyush Ambalal Gandhi Filed income tax return of total income of Rs. 16,38,170 on 27.9.2013 after claiming rebate in respect of life insurance premium, housing loan etc. restricting to Rs.1,00,000/- and further claim was also made under section80G of the act. On 21.11.2017 the Assessing Officer asked the petitioner to provide clarification regarding premature surrender of policy of Bajaj Alliance which was surrendered on 21.11.2012.Assessee furnished the source of investment and other details. After on 29.3.2018 assessing officer issue notice u/s 148 of the act for reopen the assessment against these assessment assesse filed a petition before the court.
Advocate for the petitioner Mr Ketan H Shah contented that applicability of Section 80CCC (2) of the Act could not arise because assesse would not claim relief under section 80CCC (1).For support their contention counsel for petitioner relied on the decision of Ami Ashish Shah vs. Income Tax Officer.
Counsel for the Respondent Mr.Varun K.Patel observed that the assessing officer had a reason for believing it was a fit case to reopen that the sum of rupees earned the assesees from the policy had not claimed benefit under Chapter VI-A and the accretion value was to be taxed under Section 56 of the Act. Furthermore DR contented that “assessee’s case that relief was not claimed under Section 80CCC (1) was not only erroneous but was an irrelevant consideration”.
After considering the contention of the both side, the bench of Justice N.V.Anjaria and Justice Bhargav D. Karia allow the petition and observed that “Condition for taxability of policy surrender value is that the amount invested was claimed as relief under Section 80CCC (1) of the Act which is not the case here.” Hence the re-assessment powers could not be exercised either for the purpose of re- verification or to have a merry sailing for a rowing inquiry.
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