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2023 (12) TMI 650 - HC - Income TaxReopening of assessment - notice has been received after expiry of four years - Reason to believe - capital gain of the sale of property - HELD THAT:- In our view, the notice impugned as well as the order of disposing objections have to be quashed and set aside. We are in agreement with the submissions made by assessee. Admittedly, assessment was completed under section 143(3) of the said Act and assessment order came to be passed assessing Petitioner’s income at Rs. 82,07,933/- against disclosed income at Rs. 81,23,993/-. The entire basis for reason to believe is accessed from Petitioner’s record and there is nothing to indicate that there was any failure on the part of Petitioner to disclose fully and truly all material facts necessary for his assessment. Assessing Officer has made bald allegations that even though the assessee has produced books of account, profit and loss account balance sheet and other evidence, no requisite material facts, as noted in the reasons for reopening, were embedded in such a manner that material evidence could not be discovered. In our view, this has been made only to get over the fetters as held in Calcutta Discount Co. Ltd. V. Income-Tax Officer [1960 (11) TMI 8 - SUPREME COURT]. Moreover undisputedly query was raised during the assessment proceedings and Petitioner has provided the details vide letter dated 31.10.2014 on capital gain of the sale of property. Just because the same is not referred to in the assessment order, it does not mean that the query raised was not the subject matter of consideration while completing the assessment. As held by the Division Bench of this Court in Aroni Commercials Ltd. [2014 (2) TMI 659 - BOMBAY HIGH COURT] it is not necessary that an assessment order should contain reference and/or discussion to disclose its satisfaction in respect of query raised. This is a clear case where the reopening of the assessment is merely on the basis of change of opinion of the Assessing Officer from that held earlier during the course of assessment proceeding. This change of opinion does not constitute justification and/or reasons to believe that income chargeable to tax has escaped assessment. Decided in favour of assessee.
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