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2017 (10) TMI 1529 - ITAT CHENNAIValidity of Reopening of assessment - validity of reasons to believe - change of opinion - capital gain computation - conclusion only on the basis of value u/s.50C(1) to reopen the assessment - assessment proceedings completed u/s.143(3) - HELD THAT:- Provisions of the section 147 of the Act does not enable the AO to exercise his jurisdiction for reopening the concluded assessment . There is no dispute to the fact that Sec.50C(1) is a deeming provision, which, mandates that if the Fair Market Value adopted by the SRO for stamp duty purpose is more than the sale consideration disclosed by the assessee, the Fair Market Value adopted by the SRO for stamp duty purpose should be deemed to sale consideration - assessee in terms of Sec.50C(2) can object to adopt such value, it cannot be denied that value u/s.50C(1), automatically it cannot be considered as understatement in sale value - it is not appropriate on the part of the AO to jump to a conclusion only on the basis of value u/s.50C(1) to reopen the assessment , when the same documents which were already brought on record at the time of original assessment, he failed to take a cognizance of that documents and framed the original assessment. In the present case, the AO observed that on verification of documents, it was seen that the value u/s.50C was fixed by DRO, of property at ₹ 735 lakhs. Hence, it means that the said details were called for by Ao at the time of original assessment. But inadvertently the same were not taken into account while framing the assessment and, therefore, it cannot be said that there is any fresh material to come to different conclusions. The relevant materials are available on record, but the Assessing Officer failed to apply his mind to that material in making the assessment order. In our considered opinion, Assessing Officer cannot recourse to the provisions of section 147 for his own failure to apply his mind to the material which, according to him, is relevant which is available on record - there was no tangible fresh material adverting to the reasons recorded for issuing reopening notice. AO reopened the assessment originally completed by him on the basis of the same records as were available before him while completing the original assessment and there was no new tangible material that had come to his possession on the basis of which the assessment was reopened. - Decided in favour of assessee.
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