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2022 (3) TMI 788 - HC - Income TaxReopening of assessment u/s 147 - eligibility of deduction under Section 54 - HELD THAT:- There can be no doubt in the facts of the present case that the issue of deduction under Section 54 of the Act was a subject matter of consideration by the Assessing Officer during the assessment proceedings leading to passing of the assessment order dated 15th December 2018. It would, therefore, follow that the reopening of the assessment by impugned notice dated 11th March 2021 is merely on the basis of change of opinion of the Assessing Officer from that held earlier during the course of assessment proceedings. This change of opinion does not constitute justification and/or reason to believe that income chargeable to tax has escaped assessment. In an undated objections to reopening, petitioner has expressly provided that the flat, when purchased by the assessee in auction under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), was one flat comprising of an area of approximately 7500 sq. ft. alongwith four car parking spaces. Petitioner has also provided all evidences to justify that when petitioner purchased the flat, it was one residential unit/flat comprising of around 7500 sq. ft. having common kitchen and common areas. Documentary evidence to that effect was also provided. These facts have not been denied or disputed by the Assessing Officer in the order dated 8th December 2021 which is also impugned in the petition alongwith notice issued under Section 148 of the Act. In the objections, petitioner has also relied upon certain judgments where it says that “Section 54/54F only requires the assessee to acquire a residential house and so long as the assessee acquires a building, which may be constructed, for the sake of convenience, in such a manner as to consist of several units which can, if the need arises, be conveniently and independently used as an independent residence, the requirement of the Section should be taken to have been satisfied” - Even during the course of submissions today, Mr. Narayanan did not disagree with the proposition submitted by petitioner. Thus quash and set aside the Notice u/s 148.
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