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Issues involved: Re-assessment u/s 147 for non-declaration of capital gain on sale of agricultural land and denial of deduction u/s 54B.
Re-assessment u/s 147: The original return of income was accepted u/s 143(1)(a) but later the Assessing Officer found that capital gain on sale of agricultural land was not declared. The reassessment was initiated u/s 147 as income had escaped assessment. The contention was raised that reopening was on the basis of audit objection, but it was denied by the Assessing Officer. The Tribunal held that since the original assessment was completed u/s 143(1)(a), it cannot be considered a change of opinion. Thus, the reassessment was deemed valid and the appeal against it was dismissed. Denial of deduction u/s 54B: The Assessing Officer denied deduction u/s 54B for the assessee, an HUF, based on previous cases related to deduction u/s 54(1) for individuals. The assessee argued that section 54B does not have a qualifying word like section 54, making the deduction available to all types of assessees. The Tribunal analyzed the provisions of both sections, highlighting that section 54B does not limit the deduction to specific types of assessees, unlike section 54. Referring to relevant case laws, the Tribunal concluded that the assessee, being an HUF, was entitled to deduction u/s 54B. Therefore, the appeal on this ground was partly allowed, directing the Assessing Officer to grant the deduction as per law.
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