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2015 (8) TMI 1480 - HC - Income TaxReopening of assessment u/s 148 - whether the reason given in the assessment order for the assessment year 2001-2002 could constitute to be a valid reason for reopening, even when the said order itself has been set aside on 20.03.2005 by the Tribunal, which was seven months prior to the issuance of the notice u/s 148? - HELD THAT:- No reasonable person can form an opinion to reopen an already concluded assessment on the basis of an assessment order of a subsequent year, which has already been set aside by the Tribunal and attained finality. In the present case, as the assessment order for the year 2001-02 had itself been set-aside by the Tribunal much prior to the issuance of notice under Section 148, which was issued on the basis of the assessment order for the year 2001-02, in our considered opinion, there existed no reason for issuance of the notice under Section 148. The reopening of assessment for the assessment years 1999-2000 and 2000-2001 in the case of assessee, cannot be justified in law. Question No.1 is thus answered in favour of the assessee and against the Revenue. Rejection of books of accounts - calculation of agricultural income as had been done in the case of N.G. Pai, by the same AO for the same assessment year, which was calculated at the yield of 14 Quintal per acre and the price of arecanut at ₹ 10,000/- per quintal, in which case the income of the assessee would be over ₹ 25 lacs, which is much higher than claimed by him - HELD THAT:- The Tribunal has, without giving any cogent reason, set aside the order of the Appellate Commissioner and restored the order of the AO, even though the Tribunal has noticed that the agricultural income for a closer assessment year 2001-02 was ₹ 20,41,000/- which has been affirmed by it, yet the same has not been taken to be a material basis for arriving at an income of the assessee for the assessment year in question i.e., 2003-04, where the assessee had disclosed his agricultural income of ₹ 21,93,569/- which was merely ₹ 1.5 lacs more than the income accepted two years earlier in 2001-02. In view of the aforesaid, we are of the opinion that the Tribunal was not right in reversing the finding of the Appellate Commissioner, and restoring the estimation of income by the AO. In the facts and circumstances of the case, the second substantial question of law as framed in these appeals is also answered in favour of the assessee and against the Revenue.
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