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2022 (8) TMI 855 - AT - Income TaxValidity of reopening of assessment u/s 147 - scope of new/fresh information or material initiating reassessment - Rental income receipts as deemed income - HELD THAT:- Property in question which was situated at Milton Apartments Mumbai was rented upto assessment year 2008-09. For assessment 2008-09, the said property was rented for a sum and assessment order for AY 2008-09 u/s 143(3) was also passed including the above rented income. For the subsequent assessment years namely AY 2009-10 and AY 2010-11, no rental income was declared by the assessee in the return of income and order was passed u/s 143(1) and the Department had accepted the assessee’s stand that there was no rental income earned by the assessee from the said property situated in Milton apartments. For the impugned assessment year AY 2011-12, no rental income was declared on the said property in the return of income, which was the same situation as was prevailing for the previous two years as well. During the impugned year, the property in question was sold by the assessee and the income from LTCG on sale of said property came for consideration before the AO. Details were called for by the AO during the course of assessment and an addition was made as LTCG on sale of the impugned property. Therefore, from the facts before us, it is evident that no new/fresh information or material came into the possession of the assessing officer necessitating him to initiate reassessment proceedings under section 147. All the information on the basis of which reassessment proceedings have been initiated by AO was within his knowledge at the time of passing of original assessment order. AO has initiated reassessment proceedings on reconsideration of the same facts which prevailed during the course of original assessment. No new facts/materials/information was discovered which led to the belief that income had escaped assessment, which was not in the knowledge of the assessing officer at the time of original assessment. Re-assessment proceedings were on a mere “change of opinion” and the AO is seeking a review of his earlier order vide the present reassessment proceedings. We are of the view that Ld. CIT(Appeals) has erred in facts and in law in confirming the additions made by the AO in the reassessment proceedings. - Decided in favour of assessee.
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