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TMI Blog2025 (3) TMI 721X X X X Extracts X X X X X X X X Extracts X X X X ..... , the respondent authorities cannot reopen the reassessment on the ground that the then AO has not inquired properly and/or adopted casual approach.
In our view, issuance of notice u/s 148 should be based on the reasons to believe which should have direct nexus with any new information and/or tangible material which has come to the knowledge of the respondent authorities based on assessment proceedings.
The revenue authorities, cannot under the guise of reasons to believe permit to reopen the case on the ground that the then Assessing Officer has not properly inquired in the proceedings.
The impugned notice seeking reopening of assessment year falls within the category of change of opinion, as at the relevant point of time, in the original inquiry, the petitioner has already made available all the documents and evidence so as to claim the deduction u/s 54B - Decided in favour of assesee. X X X X Extracts X X X X X X X X Extracts X X X X ..... eeds of new agricultural lands. 2.8 The petitioner vide letter dated 30.08.2017 furnished the following details before the then Assessing Officer: * Statement showing date, purchase amount, stamp duty, registration charges, advocates fees etc. for lands purchased by the petitioner; * Copy of bills for fencing expenses incurred in relation to land. 2.9 The petitioner vide letter dated 30.11.2017 furnished the following evidences and explanation before the then Assessing Officer: * Summary of deposits of sale proceeds of land vis-a-vis schedule shown in the conveyance deed; * Summary of payment made for purchase of new agricultural lands; * Agricultural land was sold and proceeds were received from October 2013 to January 2015 which were invested in acquisition of new rural agricultural land as and when the same were received. Bank statement highlighting relevant transactions were furnished. 2.10 Thereafter, the assessment was framed under Section 143(3) of the Act by an order dated 13.12.2017 without disturbing the return of income filed by the petitioner. Thereafter, impugned notice dated 31.3.2021 under Section 148 of the Act came to be issued upon the petitioner seek ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such reason must be that of an honest and reasonable person based on reasonable ground and not on mere change of opinion. Learned Senior Advocate Mr. Hemani further submitted that such reason to believe must have direct nexus with new and/or tangible material or information that has come in possession of the respondent after framing of the assessment. Learned Senior Advocate, relying on the reasons recorded, submitted that the respondent authority has merely relied upon the material already available on record and thereby, the same is not permissible in eye of law. (3) Learned Senior Advocate Mr. Hemani further submitted that even otherwise, the issue on which the reopening is sought, has already been scrutinized at the original assessment stage with regard to merits of claim of deduction under Sections 54B of the Act after going through all the materials provided by the petitioner at the time of scrutiny inquiry and thereby, the revenue authorities could not have assumed the jurisdiction under Section 148 of the Act just to examine another facet of the same claim. He, therefore, urged this Court to allow the present petition. (4) Lastly, learned Senior Advocate Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd excess deduction was claimed and allowed. (3) Learned Senior Standing Counsel Mr. Karan Sanghani further submitted that the concerned Assessing Officer, during the original assessment proceedings, adopted the casual approach in respect of allowability of deduction under Section 54B of the Act. According to learned Senior Standing Counsel Mr. Karan Sanghani, though the material was available on record at the time of first assessment, no conscious decision was made and a mistake appears to have been committed and thereby, it would not in any case create an embargo on the power of the Assessing Officer under Section 147 of the Act and the same would not fall within the category of change of opinion. (4) By making above submissions, learned Senior Standing Counsel Mr. Karan Sanghani urged this Court to dismiss the present petition. 6. Having heard the learned advocates for the respective parties and having gone through the material on record, a short question that falls for consideration of this Court is whether the impugned notice under Section 148 of the Act based on reasons recorded can be said to be the change of opinion? 7. So as to decide the aforesaid question, at the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tal Vadodara purchased on 09 10 2013 and claimed deduction u/s 548 of the Act As per section 54B of the Act, exemption u/s. 548 on purchase of agriculture land 1s available only for the land purchased after two years the transfer of earliest asset. However, in the instant case, the assessee had purchased agriculture land situated at GAM Fatehpura, Vadodara was purchased in FY 2013-14 and the deed was executed on 09.10.2013, , which is prior ta transfer of the property sold in FY 2014-15. The assessee claimed excess deduction u/s 54B to the extent of Rs. 25,55,399/-. Therefore, it is clear that the assessee is not eligible for claimed deduction u/s. 548 of the Act and such exemption was allowed is violation of provisions of 54B of the 1.T. Act. 6. Basis of forming reason to believe and details of escapement of income: On verification of records, it was noticed that the assessee has sold an immovable property at situated at block no.285( old survey no. 277/278/286/287& 288, Khata no. 489, Varnama , Vadodara on 23.05.2014 for a consideration of Rs. 1,42,00,000/against which the assessee has purchased-an agricultural land situated at Gam Fathpura, Tal: Vadodara on 09.10.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of income w.r.t. original return as well as revised return (Point No.4a); (2) Bank statements for the period from 01.04.12 to 31.03.15 i.e. whole period of receipt of sale proceedings (Point No.4b); (3) Conveyance deeds with respect to the following transactions (Point No.4c): (a) Agricultural land sold during the year under consideration; (b) Agricultural lands acquired out of sale proceeds thereof (in respect of which deduction under section 54B of the Act has been claimed); Explanation in relation to the fresh investments as well as claim of deduction under section 54B was furnished (Point No.4d)." 11. The then Assessing Officer also issued show-cause notice dated 24.11.2017 upon the petitioner to show cause as to why the deduction under Section 54 of the Act should not be withdrawn, to which the petitioner has furnished detailed submissions in relation to justification of claim under Sections 54B of the Act. The then Assessing Officer thereafter having considered all the materials on record and the submissions and the justification provided by the petitioner, framed the assessment order under Section 143(3) of the Act without disturbing the original return of in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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