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2019 (6) TMI 997 - HC - Income TaxReopening of assessment u/s 147 - validity of reasons to believe - disallowance of deduction u/s 80IB(10) as assessee sold the flats to related persons - HELD THAT:- It is well settled that under the Income tax Act, 1961, the assessment for each year is a separate assessment and has to be assessed separately. While making the assessment for a particular year, the AO has to see whether the assessee is entitled to claim a deduction in that assessment year. Insofar as assessment year 2011-12 is concerned, the assessee had duly complied with the requirements of section 80IB(10) and was therefore, entitled to the deduction claimed thereunder. However, now, the AO seeks to reopen the assessment and disallow such deduction on the ground that in the previous year relevant to assessment year 2013-14, the petitioner had sold flats to related persons. In the opinion of this court, if, in the year 2013-14, any event has taken place that disentitles the petitioner from claiming deduction under section 80IB(10) it would relate to that year alone. The assessments of the earlier years wherein deduction had been allowed because the petitioner/assessee was, otherwise, entitled to such deduction, cannot be reopened to disallow a claim, which was valid in the year under consideration. In the aforesaid premises, this court is of the considered opinion that on the reasons recorded for reopening the assessment, no reasonable person could have formed the belief that income chargeable to tax has escaped assessment. The impugned notice u/s 148 therefore cannot be sustained. - Decided in favour of assessee.
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