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2024 (2) TMI 468 - BOMBAY HIGH COURTReopening of assessment u/s 147 - change of opinion - notice issued after the expiry of more than 4 years - unaccounted sale of immovable properties - It is assessee’s case that they never owned these two properties and, therefore, question of it being accounted in books of account does not arise. It is also assessee’s case that assessee was only a developer and, therefore, was a confirming party for the agreement for sale entered into between original tenants, who were shown as vendors and the purchasers of the flat. HELD THAT:- In the assessment order, there is a discussion with regard to work in progress of assessee. In the letter dated 8th December 2016, assessee has given examples of certain transactions and also copies of those agreements for sale to convince the AO that assessee’s role was only that of confirming party and assessee had no right in the sale consideration. Copies of the agreements for sale with regard to the two flats mentioned in the reasons for reopening the assessment are also annexed to the petition. In the affidavit in reply, there is no denial of the facts mentioned in the petition. In the reasons recorded, a statement which is not entirely correct has been made, in as much as, it is stated that copies of the agreements for flat no. 1201 and 2002 has not been provided to the AO to examine. It is not necessary that an assessment order should contain reference and/or discussion to disclose its satisfaction in respect of the query raised. The only requirement is that the AO ought to have considered, the objection now raised in the grounds for issuing notice under Section 148 of the Act, during the original assessment proceedings. In the case at hand, the AO having raised a query and the petitioner having replied to it, it follows that the query raised was subject of consideration of the AO while passing the assessment order dated 23rd December 2016. In our view, the re-opening of assessment by the impugned notice is merely on the basis of change of opinion of the AO from that held earlier during the course of assessment proceedings and this change of opinion does not constitute justification and/or reasons to believe that income chargeable to tax has escaped assessment. Decided in favour of assessee.
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