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TMI Blog2014 (5) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... ort of approved valuer may give estimated figure on the basis of facts of each case - on mere applicability of section 50C would not disclose any escapement of income. Relying upon Commissioner of Income Tax Versus Kelvinator Of India Limited. [2002 (4) TMI 37 - DELHI High Court], Circular no.549 of CBDT has been followed and held that on mere change of opinion of AO cannot be a ground for re-assessment and that amendment of sec. 147 w.e.f. 1.4.89 has not altered the position - The AO at the original assessment stage considered all the documents and material produced before him and has accepted the cost of property as was declared by the assessee - on mere change of opinion, the AO was not justified in reopening the assessment - CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amp valuation of the property at Rs.25,89,000/-. He has also discussed that in the original assessment order itself, the basic facts as to capital gain arose to the assessee, as a result of transfer of property, has been discussed but the applicability of provision of section 50C has been lost a sight and therefore, the AO recorded the reasons to believe that there was an income escaping assessment and accordingly, the assessment proceeding u/s.147 was reopened and notice U/s. 148 was dated 08.07.2008 was issued to the assessee (appellant) with prior approval of Addl. CIT, Range-2, Agra. During the course of re-assessment Proceeding, the AO did not accept the submission of the assessee that the property was rented and the assessee was in ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s before the ld. CIT(A) and it was mainly contended that the original assessment order was passed u/s. 143(3) and the AO considered all the material and evidence with regard to capital gains and accepted the explanation of the assessee. Therefore, on mere change of opinion, reopening of assessment is bad in law. Certain decisions in support of the same were also relied upon. The ld. CIT(A) accepted the contention of the assessee regarding change of opinion involved for reopening of assessment. The ld. CIT(A) found that the AO has considered the same sale deed which he had considered at the original assessment and accepted the sale consideration declared by the assessee. For reopening of assessment proceedings u/s. 147, there is no outsid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ening of assessment have been filed. 5. We have considered rival submissions and material available on record. Hon ble full Bench of Delhi High Court in the case of Kelvinator of India Ltd. , 256 ITR 1 by following circular no.549 of CBDT held that on mere change of opinion of AO cannot be a ground for re-assessment and that amendment of sec. 147 w.e.f. 1.4.89 has not altered the position. Hon ble Gujrat High Court in the case of Garden Silk Mills P. Ltd., 237 ITR 668 held that however wide the scope of taking action u/s 148 of IT Act, it does not confirm jurisdiction on change of the interpretation of a particular provision earlier adopted by the assessing authority. For coming to the conclusion that there has been excessive loss or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO to form his opinion that income has escaped assessment. All material evidences were available at the stage of original assessment proceedings and the AO merely following the provisions of section 50C, as was not considered in the original assessment proceedings, reopened the assessment order. The assessee has disclosed all the facts which were known all along to the Revenue. Section 50C is not final determination to prove that it is a case of escapement of income. The report of approved valuer may give estimated figure on the basis of facts of each case. Therefore, on mere applicability of section 50C would not disclose any escapement of income in the facts and circumstances of the case. The AO at the original assessment stage consider ..... X X X X Extracts X X X X X X X X Extracts X X X X
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