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2022 (2) TMI 477 - AT - Income TaxReopening of assessment u/s 147 - whether or not the AO was justified in reopening the case of the assessee u/s 147? - Long term capital gain (LTCG) was determined after applying the provisions of section 50C - entitlement of the assessee for claim of deduction u/s 54F - HELD THAT:- Though the AO had applied the deeming provision of section 50C of the Act for computing the LTCG in the hands of the assessee, but in our considered view, the entitlement of the assessee for claim of deduction u/s 54F of the Act continues to remain dependent on the amount of the “net consideration” that was received by him on the transfer of the property in question. As stated by the ld AR, and rightly so, the AO without applying his mind had in a mechanical manner reopened the case of the assessee u/s 147 of the Act. Although, we are not oblivious of the fact that an AO at the time of reopening of the case of assessee is not required to conclusively prove that the income of the assessee chargeable to tax had escaped assessment, and is only required to have with him a bonafide reason to believe that the income of the assessee chargeable to tax had escaped assessment, but then, where in the totality of the facts of the case before him it can safely be gathered that no income of the assessee chargeable to tax had escaped assessment, there would be no justification on his part in reopening the case of the assessee by taking recourse to the provisions of section 147 - we not being able to persuade ourselves to uphold the very basis on which the case of the assessee had been reopened u/s 147 of the Act, thus, set aside the assessment framed by him u/s 143(3) r.w.s. 147 of the Act, dated 16.11.2011. Assessee appeal allowed
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