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2020 (8) TMI 563 - AT - Income TaxReopening of assessment u/s 147 - Addition of LTCG on land which belongs to HUF - land was inherited by the assessee from forefathers, it belongs to HUF - assessment has been reopened after a period of four years - HELD THAT:- In the instant case, we find the very same fact was examined by the AO in the first round of reassessment proceedings. Therefore, again issuing the notice u/s 148 of the Act by recording reasons for escapement of income on the same set of facts, in our opinion, amounts to change of opinion. Therefore, we find merit in the submission of the ld. Counsel that the reassessment proceedings initiated by the AO are merely on account of change of opinion and, therefore, is not sustainable. There has to be tangible material for the AO to come to the conclusion that there is escapement of income and there must be a live link with such material for the formation of the belief. Merely using the expression ‘failure on the part of the assessee to disclose fully and truly all material facts’ is not enough. The reason must specify as to what is the nature of default or failure on the part of the assessee. As mentioned earlier, the Tribunal, in the instant case, while deciding the case of Smt. Ashrafi Devi, had merely directed the AO to verify as to whether the HUF has filed the return disclosing the capital gain arising from transfer of such land. However, in the instant case, the AO, instead of verifying the same, reopened the assessment on wrong appreciation of facts which is nothing, but, mere change of opinion. Original assessment was framed u/s 147/143(3) on 26th March, 2014 accepting the returned income at ₹ 3,580/- wherein the issue of capital gain on transfer of such land was duly considered and accepted on the basis of various supporting documents filed at the time of such reassessment proceedings and since there is no allegation in the reasons recorded that there is failure on the part of the assessee to disclose fully and truly all material facts necessary for completion of the assessment, therefore, the notice issued u/s 148 after a period of four years from the end of the relevant assessment year in the instant case is illegal and invalid being without jurisdiction. - Decided in favour of assessee.
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