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2014 (6) TMI 966 - ITAT HYDERABADReopening of assessment - assessment of capital gains on sale of land - Held that:- After the initial return of income in which assessee had not disclosed long term capital gains on the sale of land, it voluntarily filed a revised return of income on 28.08.2006 admitting long term capital gains of ₹ 34,21,819/- on the sale of land. Thereafter, the case was picked up for scrutiny and this very issue was examined thoroughly. The assessment was completed under section 143(3) on 14.12.2007 and some expenditure claimed was disallowed. The issue of assessment of capital gains on sale of land was considered thoroughly by the assessing officer and information on this issue was available on the very 1st page of the computation given by the assessee in the revised return of income. In fact, this was the only issue which was presented in the revised return. Therefore there was no reason to even suspect that such an issue could not be discovered by the assessing officer during the assessment proceedings. Indeed, the assessment order dated 14.12.2007 provides a discussion of this very issue and the assessing officer clearly goes on to say in para-1 as well as in para-4 of that order that long-term capital gain has to be assessed on the sale of land. It is very clear from above that after a detailed scrutiny and investigation the assessing officer had formed an opinion on the taxation of profit on sale of land as capital gains. Now, without any further information and without providing an iota of evidence to show any default on the part of the assessee, the assessing officer is not permitted as per law to reopen the assessment and change his opinion to assess the profit on sale of land as business income. The aforementioned facts very clearly show that this is only a change of opinion. - Decided in favour of assessee
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