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2014 (9) TMI 492 - AT - Income TaxValidity of proceeding initiated u/s 147 – Reduction in claim of exemption u/s 54 considered in original proceedings - Held that:- It can be seen from the reasons recorded that basis for reopening of assessment is sale of property for ₹ 1,95,00,000/-, on which assessee earlier has claimed exemption u/s 54 of the Act - assessee during the pendency of first reassessment proceeding, in response to a notice u/s 142(1) dated 21/11/2007 has furnished the details with regard to the sale of property and in another letter dated 17/03/2008 has computed capital gain - once the information relating to sale of property on which assessee has claimed exemption u/s 54 was available in the assessment record during the first reassessment proceeding, neither it can be said that there is failure on the part of the assessee in disclosing fully and truly all material facts relating to assessment nor it can be said that the information relating to sale of the property subsequently came to the notice of the AO - information relating to the sale of property was available before the AO at the time of completion of the first assessment u/s 143(3) read with section 147 of the Act, hence there is no reason why the issue relating to reducing the exemption claimed u/s 54 from the cost of acquisition was not considered in the original assessment order passed on 03/06/2008 - when the assessee has furnished all information relating to the sale of immovable property in pursuance to enquiry conducted by department, which forms part of the assessment record at the time of completion of original assessment u/s 143(3) read with section 147 of the Act, reopening of assessment again on the very same issue after expiry of four years from the end of the relevant AY is legally unsustainable as it is against statutory mandate of section 147 - proceeding initiated u/s 147 of the Act is invalid in law and assessment order passed u/s 147 also cannot be sustained – Decided in favour of assessee.
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