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2021 (7) TMI 71 - HC - Income TaxReopening of assessment u/s 147 - Eligibility of reasons to believe - Notice after the end of 4 years from the end of the relevant assessment year - capital gain on sale of land - nature of land sold - HELD THAT:- Reassessment proceeding initiated is not mere “change of opinion”, but based upon additional facts which were not at all taken into consideration by the assessing authority. Initiation of the reassessment proceedings was started by issuance of notice under Section 148 Those proceedings are yet to be concluded, as no assessment order has been passed. Yet in this case, only objection filed by the petitioner has been decided. The petitioner will have effective and efficacious remedy against the said assessment order. Reassessment proceeding has been initiated on the basis of material having direct bearing over the case of the assessee which is based on the “reason to believe” which was recorded by the assessing authority - there is no merit in the contention of the learned counsel for the petitioner that sanction under Section 151 was granted by the competent authority in a mechanical manner. The only requirement for initiating the proceedings under Section 147 beyond the period of 4 years is that the subjective satisfaction of the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner on the reasons recorded by the Assessing Officer explaining the circumstances under which according to the Assessing Officer it was a fit case for issuance of notice under Section 148 of the Act. Entire recording of reasons to believe formed by the Assessing Officer were produced before the sanctioning authority and after going through the entire reasons recorded by the Assessing Officer the sanction was granted by him. Therefore, all the conditions prescribed under Section 151 of the Act were followed in stricto sensu. We find that re-opening of the assessment proceeding was conducted on the basis of legally valid sanction accorded by the authority under provisions of Section 151 of the Act. In regard to the argument that the present case falls within the ambit of “change of opinion” and, therefore, the reassessment proceeding initiated is not maintainable, it has already been considered that the Questionnaire issued prior to completion of assessment proceeding under Section 143(3) of the Act does not indicate anything as regards the inquiry conducted by the Assessing Officer in accordance with the provisions of Section 50C of the Act as well as undervaluation of LTCG In the entire Questionnaire, nowhere this query was made that why the petitioner has shown capital gain on the said land in the ITR when she herself was of the view that the impugned land was and agricultural land and does not fall within the purview of Section 2(14) of the Act and hence, not liable for capital gain. This act of the petitioner per se is contrary in nature and, therefore, based on tangible material the Assessing Officer has initiated the reassessment proceedings, and if the same is examined on the touchstone of “reason to believe” for issuance of notice under Section 148 of the Act recorded by the Assessing Officer. Thus re-assessment proceeding has been initiated on the basis of the material which has given rise to “reason to believe” as well as escapement of assessment has been quantified by the Assessing Officer. - Decided against assessee.
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