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2010 (10) TMI 858 - HC - Income TaxIncome escaping assessment proceedings u/s 147 - unaccounted gifts, assessee sold one bigha land but no capital gain was shown, assessee made huge investment in shares account & assessee was a director in a company and has shown the liability to the company without showing any income - Held that:- After amendment of s. 147 w.e.f. 1st April, 1989, reassessment can be initiated even if there is disclosure in the return if without considering the particulars of the return, processing is done under s. 143(1) or assessment is made under s. 143(3). No doubt, mere change of opinion by itself is not a ground for reassessment but if there are reasons to believe that tax has escaped, reassessment is permissible. Reasons can be even on the basis of particulars of the return without any new material. Even if proceedings under s. 143(2) are not taken, reassessment proceedings can be taken. In the present case, the CIT(A) set aside the proceedings by wrongly holding that reassessment could not be initiated on the basis of material already disclosed in the return without going into the correctness of the reasons - prima facie the reasons for reassessment are not irrelevant. In any case, the same could have been gone into by the CIT(A) before reassessment was set aside as rightly held by the Tribunal - the view taken by the Tribunal cannot be held to be erroneous. No substantial question of law arises.
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