2014 (7) TMI 204

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..... e assessment and there was no fresh material coming to the possession of AO on the basis of which AO could have arrived at reasonable belief that income has escaped assessment. 2. The order of the ld.AO is bad in law as it has been passed without providing reasons recorded by him u/s 147 of the Act at the time of issue of notice u/s 148." 3. At the time of hearing before us, it is submitted by the learned counsel that from the copy of reasons recorded for reopening of assessment, it is evident that the Assessing Officer formed an opinion that the assessee is not entitled to exemption under Section 54 on the ground that the property transferred by the assessee was agricultural land and not a residential property. That after the reopening o .....

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..... therefore, submitted that the order of learned CIT(A) on this point should be sustained. 5. We have carefully considered the submissions of both the sides and perused relevant material placed before us. Hon'ble Jurisdictional High Court in the case of Ranbaxy Laboratories Ltd. (supra) held as under:- "The very basis of initiation of proceedings for which reasons to believe were recorded was income escaping assessment in respect of items of club fees, gifts and presents, etc., but while these items were not disturbed, the Assessing Officer proceeded to reduce the claim of deduction under sections 80HH and 80-I which was not permissible. The Tribunal was right in holding that the Assessing Officer had the jurisdiction to reassess issues .....

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..... see under Section 54. He formed this opinion on the ground that the capital asset transferred by the assessee was agricultural land and not a residential property, therefore, the assessee is not eligible for exemption under Section 54. Now, from a perusal of the assessment order, we do not find any factual finding corroborating to the reasons for reopening of assessment. In the assessment order, the Assessing Officer has nowhere recorded that the property sold by the assessee was agricultural land and not a residential house, so, the assessee is not entitled to exemption under Section 54. It was clarified by the learned counsel that at the time of hearing, the Assessing Officer called for the sale/purchase deed of all the properties. From t .....

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