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TMI Blog2017 (9) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... during the course of original assessment proceedings. It is clearly a case of change of opinion by the Assessing officer where he has allowed the deduction under section 54F during the course of original assessment proceedings and on the same pieces of information, he has reinitiated the proceedings by issuance of notice u/s 148 of the Act. Further, we donot see any failure on the part of the assessee to disclose relevant particulars during the course of original assessment proceedings as we have noted above. In the result, the reopening of assessment proceedings u/s 147 is not justified.- Decided in favour of assessee. - ITA No. 132/JP/16 - - - Dated:- 23-8-2017 - SHRI KUL BHARAT, JM AND SHRI VIKRAM SINGH YADAV, AM For The Assessee : Shri Manish Agarwal (C.A.) For The Revenue : Shri S.L. Chandel (Addl.CIT) ORDER PER SHRI VIKRAM SINGH YADAV, A.M. This is an appeal filed by the assessee against the order of Ld. CIT(A), Jaipur dated 02.12.2015 for A.Y. 2008-09 wherein the assessee has taken following grounds of appeal are as under:- 1. That learned CIT(Appeals) has erred in holding that the Assessing Officer was justified in reopening the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03.2014 and the reasons for reopening recorded were as follows: On perusal of the record it revealed that the assessee has claimed deduction u/s 54F of ₹ 24,83,898/- As per agreement dated 01.08.2008 with Ace India Adobes Ltd, Ajmer Road, Jaipur, the assessee purchased plot H-72 in colony Platinum Green village Mahela, Jharna, Maujamabad Dist. Jaipur for 25,00,000/- and claimed deduction u/s 54F of ₹ 24,83,898. This agreement did not reflect the completion of house within the prescribed limit u/s 54F of the IT Act, 1961. Assessee failed to fulfil the condition as per sec 54F, hence the deduction u/s 54F of ₹ 24,83,898/- is not allowable. In view of above, I have reason to believe that the income to the extent of ₹ 24,83,898/- escaped assessment within the meaning of sec 147 of the IT Act, 1961 and this is a case fit for issue of notice u/s 148 of the Act 3. We now refer to the relevant findings of the Ld. CIT(A) which are under challenge before us. The same are reproduced as under:- 3.1.2 Determination ( i) I have carefully perused the submissions of the appellant, the assessment order, re-assessment order and the material pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ropriate authority for completion of the house. Moreover, the AO mentioned Assessee failed to fulfil the conditions as per section 54F and he had reason to believe that the income to the extent of 24,83,898/- escaped assessment within the meaning of section 147 of the IT Act. It may be mentioned that proviso to section 147 is also a part of section 147 of the Act. Therefore, in view of the above discussion, this contention of the appellant has not weight and deserves to be rejected. ( iv) It is therefore, held that AO was justified in reopening assessment u/s 147 of the Act. Hence, this ground of appeal is rejected. 4. During the course of hearing, the Ld. AR submitted that from the reasons so recorded, it is evidently clear that there was no new information that came into the possession of the Ld. AO based on which it could be held that the income has escaped assessment. The agreement with Ace India Adobes Ltd., which was on the file of the Ld. AO, clearly mentioned at page 4 that the appellant had purchased the said plot of land of land of 391.2 sq. yards, with 1050 sq. feet of constructed area. Thus it is emphasized that, deduction u/s 54F was claimed for the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile of the Ld. AO, vide his letter dated 29.08.2016, but the same were not provided till date, for the reasons best known to the Ld. AO. There was no new fact/information brought on record by the Ld. AO now from which he could form a belief that certain income had escaped assessment, due to the failure on the part of the appellant to produce any document regarding the claim of exemption u/s 54F of the Act. Thus, the formation of belief had flown from the documents and facts already available on records of the Ld. AO which were duly dealt with during the original assessment proceedings, and the notice issued u/s 148 was issued merely for a change of opinion or for reconsideration of the matter already decided in the original assessment proceedings. It was submitted that in light of the facts stated above and various judicial pronouncements, notice u/s 148 cannot be issued on the basis of a mere change of opinion or reconsidering a matter. Hence, as per the proviso to section 147, reopening after four years of the end of the relevant assessment year, in a case where original assessment was made u/s 143(3) of the Act, where complete details were duly available on records, was indeed u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r wherein the assessee while working out the net capital tax liable for taxation has shown and claimed deduction of ₹ 24,83,898 (out of total investment of ₹ 25,00,000) under section 54F of the Act. All these figures of sale consideration and claim of deduction under section 54F are clearly apparent on the face of tax computation filed by the assessee during the course of original assessment proceedings. 12. We now refer to the reply filed by the assessee dated 3.9.2010 in response to AO s query letter dated 19.04.2010 filed during the course of original proceedings. In its reply, the assessee has inter alia stated as under: 6. The details of long term capital gains income earned by the assessee are as under:- a. By the assessee--- NIL b. By the minor son Nikunj Agarwal before attaining majority ₹ 42,69,262/- c. By minor daughter Aditi Agarwal ₹ 12,56,381/- 7. During the year under consideration the minor son and daughter of the assessee has sold shares of SEMCO Electric Pvt. Ltd. on which they have earned long term capital gain. These shares were gifted by the Grand Mother (Nani) of the children. These shares acquired by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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