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TMI Blog2023 (6) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... ere he is satisfied then it would be impossible for the Assessing Officer to complete all the assessments which are required to be scrutinized by him u/s 143(3) - See ARONI COMMERCIALS LIMITED [ 2014 (2) TMI 659 - BOMBAY HIGH COURT] There can be no doubt that the very issues raised in the reasons to believe has been raised by the assessing officer during the scrutiny u/s 143(3) detailed explanation has been given and the assessing officer has been satisfied with the explanation. Reopening of the assessment by impugned notice is merely on the basis of change of opinion of the AO from that held earlier during the course of assessment proceedings. This change of opinion does not constitute justification and/or reasons to believe that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itors have been increased by Rs. 192,38,32,44 but no income or revenue has been booked in profit and loss account. The drastic finding as per the return of income filed by the assessee is that A.Y. 2012-13 assessee has increased opening WIP by Rs. 164,95,76,770 which does not matches with closing WIP figure of return of A. Y. 2011-12 filed by the assessee himself. So assessee has increased WIP suddenly in a single day from 31st March 2011 to 1st April 2011 by 164,95,76,770/-. From ITS data it can be seen that assessee has sold property of Rs. 20,98,30,400 but no sale has been booked by the assessee. 3. So I have reason to believe that assessee has escaped income to the extent of Rs. 185,94,07,170/- within the meaning of Section 147 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case and the proposed re-opening is after expiry of four years from the end of the relevant Assessment Year.; (d) Nowhere in the reason to believe has the assessing officer even hinted that there was failure on the part of petitioner to disclose fully and truly all material facts necessary for his assessment; (e) In the alternative, even if that failure to disclose has not been alleged only against work in progress component in the reason to believe but as regards the non booking of sale of property worth Rs. 20,98,30,400/- it is alleged, that is factually incorrect because it has been disclosed; (f) Further, during the scrutiny assessment under Section 143(3) of the Act, query was raised for both issues and assessee by its l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t had purchased development rights during that assessment year. Copy of the invoice as well as the agreement was also annexed to its explanation, copy whereof is at Exhibit D to the petition. As regards the sale of property amounting to Rs. 20,98,30,400/- allegedly not booked by petitioner also, a query was raised during the scrutiny under Section 143(3) of the Act and petitioner by its letter dated 27th March 2015, copy whereof is at Exhibit-E to the petition, had given details of all the properties sold. In fact, details of sales made till 31st March 2012 given by petitioner indicates that the value was Rs. 50,89,81,325/-. 7, After these replies as mentioned above dated 26th March 2015 and 27th March 2015 were filed, the assessment ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of investments should not be taxed as business profits but charged to tax under the head capital gain. In support of its contention the petitioner had also relied upon CBDT Circular No. 4/2007 dated 15 June 2007. (The reasons for reopening furnished by the Assessing Officer also places reliance upon CBDT Circular dated 15 June 2007). It would therefore, be noticed that the very ground on which the notice dated 28 March 2013 seeks to reopen the assessment for assessment year 2008-09 was considered by the Assessing Officer while originally passing assessment order dated 12 October 2010. This by itself demonstrates the fact that notice dated 28 March 2013 under Section 148 of the Act seeking to reopen assessment for A.Y. 2008-09 is based ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re can be no doubt in the present facts as evidenced by a letter dated 8 September 2012 the very issue of taxability of sale of shares under the head capital gain or the head profits and gains from business was a subject matter of consideration by the Assessing Officer during the original assessment proceedings leading to an order dated 12 October 2010. It would therefore, follow that the reopening of the assessment by impugned notice dated 28 March 2013 is merely on the basis of change of opinion of the Assessing Officer from that held earlier during the course of assessment proceeding leading to the order dated 12 October 2010. This change of opinion does not constitute justification and/or reasons to believe that income chargeable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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