Answer

1. F

   Facts

   Beyond 3 years, reopening needs information that escaped income is ₹50 lakh or more. The test is escaped income, not the value of the transaction. If most of the price was funded by a loan or explained money, the escaped income may be far below ₹50 lakh.

2. P

   Provisions and law

   • Sec 149 (now Sec 282)Time limit: Sec 148A notice within 3 years from the end of the assessment year, up to 5 years only if escaped income is ₹50 lakh or more
   • Sec 69 (now Sec 103)Unexplained investments can be taxed as income if the source is not explained
3. A

   Analysis

   Sec 149 (now Sec 282) speaks of income that has escaped or is likely to have escaped, amounting to ₹50 lakh or more. If ₹35 lakh came from a bank loan paid directly to the seller and ₹20 lakh from your disclosed savings, the alleged escaped income may be nil. Show this in the reply with the loan disbursement letter and bank statements, and argue that the extended period does not apply. Officers sometimes take the gross transaction value, which can be challenged.

4. C

   Conclusion

   1. 1Prepare a source of funds table for the transaction.
   2. 2Attach loan and bank documents.
   3. 3Argue that escaped income is below ₹50 lakh and the notice is time barred.
   4. 4Add the merits so the reply is complete.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.