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2020 (5) TMI 332 - HC - Income TaxReopening of assessment u/s 148 - 'reason to believe '- Valuation of shares u/s 56(2) (viib) - HELD THAT:- Admittedly no tangible or fresh material that has come to the notice of the Assessing Authority and this is an admitted fact as may be seen from the reasons that have been extracted elsewhere in this order. The relevant phrase in Section 147 is 'reason to believe', and it has been the consistent stand of the Supreme Court that such reason must emanate from tangible or new material that has come to the notice of the AO and should not tantamount to review of the material already available on record. If this were to be permitted, there would be no end to the number of times when successive officers might apply and re-apply their mind to the same stale material coming to different conclusions every time. In the present case, the financials annexed to the return of income disclose two lot of shares, one numbering 1,00,000 and second numbering 2,17,870. The valuation thereof is also stated clearly. This has not escaped the attention of the Assessing Authority at the original instance and he has in fact made a modification to the valuation of the first lot of shares. For reasons best known to him, the second lot has been left untouched. Admittedly, there is no material that has come to the notice of the Assessing Authority in 2018 to warrant re-assessment. The proceedings impugned before me are thus nothing but a change of opinion, impermissible in law.
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