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TMI Blog2023 (8) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... order of CIT(A) allowing deduction u/s. 54B of the Act in favour of the assessee - Decided against revenue. Reopening of assessment u/s 147 - CIT(A) held the AO rightly formed an opinion that there was no detailed examination of the issue u/s. 54B of the Act in the intimation proceedings - HELD THAT:- Assessee challenged the issuance of notice u/s. 147 of the Act before the Hon ble High Court of Bombay at Nagpur Bench [ 2014 (3) TMI 1212 - BOMBAY HIGH COURT] wherein, as emanating from the record that the Hon ble High Court of Bombay at Nagpur Bench was pleased to allow the AO to complete the reassessment proceedings. CIT(A) also examined the reasons recorded by the AO as well as objections raised by the assessee regarding the reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction u/s. 54B of the Act vide order dated 26-03-2014. Aggrieved by the same, the assessee preferred an appeal before the CIT(A). The CIT(A) discussed the said issue in detail with reference to the amendment came into effect from 01-04-2013. The CIT(A) held the amended provisions are applicable prospectively, but not retrospectively. We note that the benefit of deduction u/s. 54B of the Act is available to HUF prior to the amendment by Finance Act, 2012 w.e.f. 01-04-2013, the assessment being A.Y. 2006-07 under consideration before us, the amendment w.e.f. 01-04-2013 is not applicable. Therefore, we find no infirmity in the order of CIT(A) and we completely agree with the reasons recorded in para 9.2 of the impugned order. Thus, the gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion proceedings. The relevant portion at para 8 is reproduced here-in-below for ready reference : 8. Ground relating to the validity of notice issued u/s. 148 of the Act : The return of income was filed on 29/07/2006, declaring total income of Rs. 1,87,390/- and agricultural income of Rs. 1 lacs. The return was processed u/s. 143(1) on 31-03-2008. The AO on perusal of the documents enclosed with the return of income found that the assessee has sold land at Shankarpur district, Nagpur vide 2 sale-deeds dated 23/11/2005 for Rs. 14,40,000/- and sale-deed dated 26/12/2005 for Rs. 14,40,000/- In his HUF capacity. Further on perusal of the computation of income, the AO found that the assessee has computed the capital gains at Rs. 24,57,440/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m order dated 10/03/2014 has directed the respondent No.1, the Joint Commissioner of Income-tax, Range-1, Nagpur to complete the assessment meanwhile. The Hon'ble High Court also directed the assessee to com-operate the assessment proceedings. Accordingly in pursuance to the notice u/s. 142(1) issued by the AO on 11/03/2014, the assessee vide letter dated 14/03/2014 filed before the AO submitted that the original return filed by the assessee on 29/07/2006 may be treated as return having been filed In response to the notice u/s. 148 of the Act. The reasons recorded by the AO for reopening of the assessment are reproduced in para no. 3)i) on page no. 3 of the assessment order. The ld. AO on page no. 3 to 9 of the assessment order has thor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the notice issued u/s. 148 after forming his own belief based on the material in hand forming part of the records cannot be held to be unjustified. This ground is dismissed accordingly. 10. We note that the assessee challenged the issuance of notice u/s. 147 of the Act before the Hon ble High Court of Bombay at Nagpur Bench, wherein, as emanating from the record that the Hon ble High Court of Bombay at Nagpur Bench was pleased to allow the AO to complete the reassessment proceedings. Further, the CIT(A) also examined the reasons recorded by the AO as well as objections raised by the assessee regarding the reasons recorded and held that the AO is right in reopening the assessment made u/s. 143(a)(1) of the Act as it demonstrate that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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