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2015 (11) TMI 576 - ITAT MUMBAIReopening of assessment - income of the assessee should be assessed under the head "Income from house property" whereas in the impugned assessment order passed in pursuance of such reasons recorded the Assessing Officer has treated the income to be assessed under the head "Income from other sources" - Held that:- In the assessment year 2007- 08, the assessee admitted that income from flats owned by the assessee should be assessed as income from house property. Up to the assessment year 2001- 02, the Department itself has treated the licence fee and the service charges from the flat taken on tenancy basis as business income. Thus, the material on record itself negates the premise on which the Assessing Officer has entertained his reason to believe which is based on wrong presumption of facts and therefore, the same cannot be held to be a valid ground for reopening the case within the scope of section 147 of the Act. Accordingly, we hold that the "reasons recorded" by the Assessing Officer for reopening the case under section 147 is bad in law as there is no reason to believe or any relevant material on the basis of which the assessee's case can be reopened. Accordingly, the entire proceedings initiated vide notice under section 148 of the Act, is void ab initio and consequently the assessment orders are quashed. - Decided in favour of assessee.
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