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2022 (10) TMI 1243 - GUJARAT HIGH COURTReopening of assessment - reason to believe - bogus sauda chitthi against the purchase of an immovable property situated at Surat wherein one person claimed to have paid an amount as advance to petitioner - as per reasons for reopening assessment assessee did not account an amount of advances nor did he show the same in his ROI for the year and therefore, there is escapement of income chargeable to tax - HELD THAT:- From the record, it appears that the immovable property has not been sold by the petitioners and other co-owners to Shri Kiritkumar V. Makadiya by execution of sale deed and the immovable properties are registered in the name of the petitioners and also the possession of the properties is with the petitioner and other co-owners. Thus there is no income accrued on account of transfer of a capital asset either by way of sale deed or handing over possession pursuant to agreement to sell. It is well settled that the Assessing Officer must have reason to believe that income chargeable to tax has escaped assessment. In the present case, there is no escapement of any income chargeable to tax due to failure on part of the assessee to disclose truly and fully all material facts as all the relevant records were produced on record. In absence of any escapement of income chargeable to tax, it is not open for the department to reopen the case of the present assessee. Thus impugned notices u/s148 are not tenable in law and are accordingly quashed and set aside and consequently the orders disposing of the objections raised by the petitioners against the notice for reopening are also quashed and set aside. Assessee appeal allowed.
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