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2014 (12) TMI 465 - AT - Income TaxValidity of reopening of assessment u/s 148 –Capital asset u/s 2(14) - Adoption of wrong rate of valuation as on 01.04.1981 – Expenses on sale of land disallowed – Held that:- Following the decision in Rameshwar S/o Dayaram alias Kallu Versus Income-tax Officer 6(2), Jhansi [2014 (10) TMI 332 - ITAT AGRA] and as held in Badam Singh Rajpali, Versus Income-tax Officer [2012 (7) TMI 160 - ITAT, AGRA] - The AO has not verified the information issued notice u/s. 133(6) to the assessee and required to confirm the transaction as to how the capital gains arise out of the transaction - There was no material with the AO to prima facie prove that the assessee earned capital gain because he wanted the assessee to intimate as to how capital gain arises out of the transaction - The AO had acted only on the basis of suspicion and it could not be said that it was based on belief that income chargeable to tax had escaped assessment - AO had to act on the basis of “reason to believe” and not on “reason to suspect” - the AO has not satisfied the ingredients of section 147 of the Act in the reasons recorded for reopening of assessment - the AO has not correctly assumed jurisdiction u/s. 147 /148 of the IT Act – the order is to be set aside – Decided in favour of assesse.
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