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2014 (4) TMI 537 - HC - Income TaxValidity of reopening of assessment – Sale of residential property – Claim u/s 54 of the Act – Held that:- Assessment previously framed after scrutiny is sought to be reopened within a period of four years from the end of relevant assessment year - There is nothing conclusive on record to suggest that the question of assessee’s claim for exemption from capital gain under section 54 was examined by the AO - reference u/s 54E was not an error and it is manifest from the reasons recorded - This was not a mere typographical error but a conscious decision on the part of the AO to disallow the exemption claimed - Relying upon Aayojan Developers vs. Income-tax Officer [2011 (2) TMI 738 - Gujarat High Court] – the reason on which the notice for reopening is issued lacks validity - Section 54E of the Act was neither applicable nor sought to be applied by the assessee - The question of denying any such claim under the provision for breach of condition did not arise - notice for reopening has to be sustained and supported only on the basis of reasons recorded by the assessing officer and not with the help of extraneous ground, material or possible improvement – the notice is set aside – Decided in favour of Assessee.
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