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2011 (3) TMI 1056 - ITAT, MUMBAIReopening of assessment - municipal tax was paid by the assessee for change of use of the property - Held that:- If there is no rational and intelligible nexus between the reasons and the belief, an Appellate Authority is competent to hold that the re-assessment proceedings are invalid and liable to be quashed. As could be noticed from the facts narrated by the AO and the CIT(A), as well as the facts available on record, AO appears to have reopened the assessment on mere assumptions and surmises and he never cared to verify the factual position. Letter addressed to the CIT(A), regarding the harassment meted-out to the assessee by the concerned Assessing Officer, indicates that the AO sought to reopen the assessment on the ground that municipal tax was paid by the assessee for change of use of the property and the assessee's property was converted into shops and marriage halls consisting of 110 units and in this regard he used the expression "it is understood", without mentioning as to what was the basis for his understanding. The expression used by the Assessing Officer clearly postulates the height of arbitrariness in the process of reopening the assessment and the fact that the assessment was not made on the strength of the reasons mentioned in the note clearly supports the stand of the assessee that the assessment was sought to reopened merely to harass the assessee. In favour of assessee.
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