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2014 (8) TMI 644 - HC - Income TaxReopening of assessment quashed by Tribunal Reason to believe Assessment of LTCG Held that:- It is well settled in view of the decision in the case of CIT v. Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT OF INDIA] that u/s 147, an assessment cannot be reopened merely on the basis of mere change of opinion, but there must be tangible material before the AO to come to a conclusion that there is an escapement of income from assessment - the only reason which was given by the AO for initiating reassessment proceedings was that the property was sold by the assessee for ₹ 31 lacs but its value for the purpose of stamp duty as per the circle rate was ₹ 82.54 lacs, resulting in an escapement of income of ₹ 51.54 lacs - The validity of the reopening of the assessment has to be determined on the basis of reasons which are disclosed by the AO - The legality of the notice reopening the assessment has to be determined, when it is questioned, on the basis of the reasons which are recorded by the AO - the Tribunal was justified in assessing the correctness of the notice for reopening the assessment u/s 148 on the basis of the reasons which were disclosed by the AO the reasons could not give rise to a reason to believe that income had escaped assessment for the simple reason that in the computation of income, the assessee had adopted the circle rate which is higher than the sale consideration Decided against revenue.
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