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2021 (10) TMI 466 - HC - Income TaxReopening of assessment u/s 147 - validity of reasons to believe - Long term capital loss on account of capital reduction - HELD THAT:- Assessee had incurred long term capital loss during the year against the equity shares of Ponds Exports Limited on account of capital reduction of Ponds Exports Limited wherein the face value of the shares of Ponds Exports Limited was reduced from ₹ 10/- to Re. 1/each and thus, there was an extinguishment of the proportionate right in the shares held by the Petitioner. This resulted in long term capital loss on account of capital reduction. AO had based its assessment on the accounts books and arrived at conclusion that the Petitioner had incurred long term capital loss and had allowed such long term capital loss while completing the assessment u/s 143(3) of the Act. Respondent No. 1 in the reopening of the assessment on account of change of opinion placed reliance on the same account books to opine that the Petitioner assessee had not incurred any long term capital loss during the year against the equity shares of Ponds Exports Limited and there had been no transfer of shares during the year as claimed by the Petitioner assessee - a different view has been taken from the view conclusively taken by the Assessing Officer and as held in Ananta Landmark Pvt.Ltd. [2021 (10) TMI 71 - BOMBAY HIGH COURT] it would not be open to reopen the assessment based on the very same material with a view to take another view. Petitioner had truly and fully disclosed all the material facts necessary for the purpose of assessment and that this was a case where the assessment was sought to be reopened on account of change of opinion of Respondent No. 1. Respondent No. 1 by recording that “I have reason to believe that income chargeable to tax amounting to ₹ 20.52 cr. had escaped assessment within the meaning of Section 147 of the Act read with proviso thereto” has not referred to any material fact not disclosed and merely stated that the Petitioner had failed to disclose fully and truly all the material facts necessary for its assessment for Assessment Year 2012-13. This statement is clearly made with an attempt to take the case out of the restrictions imposed by the proviso to Section 147 - Decided in favour of assessee.
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