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2020 (2) TMI 991 - AT - Income TaxReopening of assessment u/s 147 - violation of provisions of Section 54F by way of withdrawing from the amount deposited under the Capital Gain Account Scheme - no addition was made by the Ld. A.O in the reassessment proceedings for the reasons recorded in the notice issued u/s 148 - HELD THAT:- Assessment order passed u/s 143(3) r.w.s. 147 of the Act dated 8.11.2011 deserves to be quashed as it is illegal and bad in law since the Ld. A.O has not made any addition on the “reasons to believe” recorded in the notice issued u/s 148 of the Act and has himself admitted that the reasons so recorded are not coming in the purview of the escaped income because the early withdrawal of the amount deposited in the Capital Gain account before the expiry of the time period provided u/s 54F of the Act has been offered to tax by the assessee and shown as income for Assessment Year 2011- 12. Addition of ₹ 39,40,000/- made in the re-assessment proceedings was already made during the course of original assessment proceedings. The assessee has challenged the disallowance of cost of acquisition of the property denied by the Ld. A.O. in the appeal filed to Ld. CIT(A), who has still not adjudicated the issue on merit.We therefore quash the reassessment proceedings and allow the legal issue raised by the assessee in Ground No.1. Ground No.2 which is raised on merits we find it to be merely academic to adjudicate the same since we have already quashed the reassessment proceedings and impugned addition of ₹ 39,40,000/- is still pending before Ld. CIT(A) for adjudication in the appeal filed against the original assessment u/s 143(3) of the Act. We therefore dismiss Ground No.2 as infructuous.
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