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2018 (12) TMI 1831 - AT - Income TaxReopening of assessment u/s 147 - change of opinion - sale of agricultural land - Claim of deduction u/s.54F denied - HELD THAT:- A perusal of the letter of assessee addressed to AO explaining the sale of the property at Uthandi village in the course of original assessment proceedings, which culminated in the assessment order dated 21.01.2014 clearly show that the issue has been considered by AO in the course of original assessment proceedings. Re-opening of the same done by AO by issue of notice u/s.148 of the Act dated 27.11.2015 on the basis of the Gazettee Notification dated 09.11.2010, is nothing but a change of opinion. Gazettee Notification dated 09.11.2010 was very much available when the original assessment order was passed u/s.143(3) of the Act on 21.01.2014. Therefore, this is not new evidence, which has come to light. The benefit available to the Department under Explanation -2 to Section 147 of the Act also would not help to the Department in so far as the claim of agricultural land is not falling under any exemptions provided in the said Explanations. Assessment order in the case of assessee’s wife Smt Seema Shroff and the coowner passed u/s.143(3) of the Act on 14.03.2014 accepting the claim on sale of agricultural land remains undisturbed. This being so, clearly the reopening being on change of opinion, the same is unsustainable and consequently quashed. Deduction u/s.54F - What has been sold by assessee is only agricultural land in so far as the sale deed was executed on 18.01.2011 whereas the said Uthandi village has come within the Corporation limit by virtue of the Government Order No.97 dated 19.07.2011 as has already been held by the Co-ordinate Bench of the Tribunal in the case Shri N. K. V. Krishna referred to supra. In respect of an alternate claim of assessee that the assessee has also alternatively eligible of deduction u/s.54F. Admittedly, the certificate issued by Executive Engineer, Greater Chennai Corporation clearly shows that the location of the building is in primary residential zone as per CMDA land use map and the building plan has been sanctioned for residential purpose only. Obviously, the Executive Engineer, Zonal Office, Greater Chennai Corporation is a competent person to decide on the location map in respect of the building as also the plan approval and the Executive Engineer having given a finding and being the competent authority, obviously assessee would be entitled to claim of deduction u/s.54F, though the same is liable to be restricted to the residential portion only. - Decided in favour of assessee.
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