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2014 (6) TMI 470 - AT - Income TaxValidity of reopening of assessment u/s 147 of the Act – Reason to believe - Held that:- CIT(A) rightly held that the AO has accepted the income returned u/s 143(3) of the Act, after examination of all the relevant material, such as agreement/cancellation of agreement - the AO had no reason to believe that there was escapement of income to initiate proceedings u/s 147 of the Act – Relying upon CIT V/s. Kelvinator India Ltd. [2010 (1) TMI 11 - SUPREME COURT OF INDIA] - mere change of opinion cannot be a reason to reopen the assessment - the AO has rightly taken the consideration of Rs.20 lakhs received by the assessee from M/s. Balaji Construction Company under the head ‘capital gain’, and gave benefit u/s 54EC in the original assessment - CIT(A) was justified in holding that the reopening of the assessment, based on the audit objection, is neither legal nor valid, and consequently, cancelling the same - Decided against
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