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2014 (7) TMI 204 - ITAT DELHIReopening of assessment u/s 147 of the Act – Reason to believe – Held that:- The decision in RANBAXY LABORATORIES LIMITED Versus COMMISSIONER OF INCOME TAX [2011 (6) TMI 4 - DELHI HIGH COURT] followed - AO formed an opinion that there was escapement of income being the exemption allowed to the assessee u/s 54 – there was no factual finding corroborating to the reasons for reopening of assessment - In the assessment order, the AO has nowhere recorded that the property sold by the assessee was agricultural land and not a residential house, so, the assessee is not entitled to exemption u/s 54 - the property sold by the assessee was the residential house and not the agricultural land - the very basis of initiation of proceedings on the basis of which the AO formed an opinion for escapement of income was not existing - The basis for reopening of assessment was that the assessee is not entitled to exemption u/s 54 because the property transferred by the assessee was agricultural land and not residential house - the AO reduced the exemption u/s 54 on the ground that the properties purchased by the assessee were two residential houses and not one - this was not the basis for reopening of assessment - reopening of assessment was not valid – the additions made in the order of reassessment do not survive - Decided in favour of Assessee.
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