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2014 (3) TMI 1212 - HC - Income TaxReopening of assessment u/s 147 - propriety of allowance of exemption u/s 54B - HELD THAT:- Audit Department had placed a note pointing out that it was incorrect. The note has been responded to by the Deputy Commissioner of Income Tax on 29th June, 2010 who pointed out that exemption allowed was in accordance with law. In this situation, our attention has been invited to judgment of Kelvinator of India Limited [2010 (1) TMI 11 - SUPREME COURT] to urge that mere change of opinion cannot constitute a reason to review the assessment. As submitted that admittedly the land was being used as agricultural land and as it falls under the Urban Agglomeration being urban land, a return was required to be filed under the Urban Land and Ceilings Act and retainable land was worked out to 6000 Sq. Mtrs. As stated that it has been sold as agricultural land only and it was never converted and put to non-agricultural purposes. Advocate Parchure states that as land was in urban agglomeration and covered under the Urban Land Ceilings Act, for the purposes of Income Tax act, the same cannot be accepted as agricultural land. He further points out that a development scheme was also sanctioned under Section 20 of U.L.C. Act on said land. Question before this court is about the validity of change of opinion, as a ground sufficient to issue notice under Section 148 of the Income Tax Act. Admittedly, there were no section 263 proceedings. In this situation, place the matter for further consideration on 16th April, 2014 as jointly requested. We direct the respondent no.1 to complete the assessment in the meanwhile. However, same shall be without prejudice to rights and contentions of the petitioner. Petitioner shall cooperate with the department for completion of such assessment.
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