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TMI Blog2016 (12) TMI 671X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts and in the circumstances of the case and in law, the Tribunal was justified in stating that the reopening of the instant case was not according to law and facts. (ii) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in allowing the appeal of the assessee without appreciating the fact that as per Section 54EC of the Income Tax Act, 1961, the investment in specified bonds are to be made after the transfer of long term capital asset which happened on the registration of the sale deed and transfer of possession that is during the A.Y. 2007-08 and not A.Y. 2006-07?" 3. Regarding question (i) : (a) For the Assessment Year 2007-08, the respondent assessee filed its return of income decl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer in scrutiny proceedings under Section 143(3) of the Act by order dated 26th November, 2008. It was pointed out that the said property was a family property in which his mother (Devhuti Vaidya) had undivided and indeterminate rights / share in the said property. Therefore, though the respondent assessee and his family members did not have possession of the said property, they had filed caveat objecting the grant of probate to the Will of the respondent assessee's maternal grand father Mr. Anantrai Pattani in favour of his maternal uncle Mr. Kumar Pattani. (d) In the above view, as a part of the settlement arrived at between the respondent assessee and his family members with his uncle Mr. Kumar Pattani, an Agreement for S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act did not accept the petitioner's objections. Consequently, the Assessing Officer brought to tax an amount of Rs. 6.21 crores on the above account. (Rs.4 crores being the respondent's share and Rs. 2.21 crores being his share in his late father Mr. Haresh Vaidya's interest, who had expired in the meantime.) On appeal, the CIT(A) also dismissed the respondent assessee's appeal. (f) On further appeal, the Tribunal by the impugned order held that the Assessing Officer could not have any reason to believe that income chargeable to tax has escaped assessment. In particular, it held as the respondent assessee had offered capital gains to tax in the Assessment Year 2006-07 and the same was accepted after examination / consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Mr. Kumar Pattani, uncle of respondent assessee, by withdrawing his objection to the probate petition. Further, the impugned order also refers to the fact that the communication received from the Deputy Director of Income Tax (Investigation), Surat which was the material for issuing the impugned notice, also seems to indicate that the entire exercise was only for denying the benefit of Section 54EC of the Act in view of the amendment thereto with effect from Assessment Year 2007-08. In the above view, the impugned order held that reopening notice was bad in law as the Assessing Officer could not have had any reason to believe that the income chargeable to tax has escaped assessment. The impugned order also held on merits in favour of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Tribunal that the report received from the Deputy Director of Income Tax (Investigation), Surat essentially seeks to deny the exemption under Section 54EC of the Act in view of the amendment thereto. When the capital gains has been offered to tax in earlier assessment year and accepted by the Revenue in scrutiny proceedings, then a mere change in law in the subject assessment year with regard to extent of exemption will not give any reason to believe that income chargeable to tax in the subject assessment year had escaped assessment. (i) In the above view, question (i) as proposed does not give rise to any substantial question of law. Thus, not entertained. 3. Regarding question (2) : (a) We have not interfered in the Tribunal&# ..... X X X X Extracts X X X X X X X X Extracts X X X X
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