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2017 (3) TMI 114 - HC - Income TaxReopening of assessment - accrual of income - unexplained cash received - difference between sale deed and sauda chitthi as received by the assessee in cash - Held that:- There is no tangible material available with the AO to form a reasonable belief that the amount of ₹ 18,23,19,011/- has been received by the respective petitioners assessee in cash. As observed herein above, as such there is no material whatsoever with the AO that any amount of sale consideration has been received by the respective petitioners assessee. The formation of opinion by the AO thus seems to be on surmise and conjecture, which cannot be the basis for reopening the assessment of concluded assessment, in exercise of powers under Section 147 of the Income Tax Act. Even as per the statement of Shri Rajesh Vaghani, the sauda chitthi was immediately cancelled. There is no tangible material along with the sauda chitthi that any sale consideration is received by the respective assessee. As observed herein above, subsequently the sale deeds have been executed by the original land owners in favour of one Shri Popat Kakadiya and the original land owners have received full sale consideration of ₹ 56,39,500/- . Under the circumstances, it cannot be said that any income had accrued to the assessee. Once no income had accrued to the assessee, the formation of opinion by the AO that the assessee have received ₹ 18,23,19,011/- in cash has been vitiated and as such, for which, there is no basis. Under the circumstances also, the impugned notice to reopen the assessment for AY 2009-10 deserves to be quashed and set aside. - Decided in favour of assessee.
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