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TMI Blog2012 (7) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... opening of the assessment is illegal and not as per the law, which the appellant has challenged and has not been accepted by CIT (Appeals) which is highly unjustified, without following of the procedure and ignoring the true spirit of section 147 of I.T. Act, notice issued u/s 148 can not be said to be legal, same is liable to be quashed. 2. That the authorities below have erred on facts and in law while not allowing of the assessee's claim of exemption u/s 54F of the Income Tax Act. The exemption claimed by the assessee u/s 54F is liable to be allowed being the assessee has fulfilled all the conditions laid down under the said provision of Act for allowing of the exemption, the addition made by not allowing of the exemption u/s 54F of I.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purpose of section 54F the assessee has purchased residential house in the name of son. The CIT(A) upheld the action of the Assessing Officer in reopening assessment under section 147 of the Act and issuing notice under section 148 of the Act. On merit, the CIT(A) upheld the order of the Assessing Officer on the ground that investment was not made in the name of the assessee, but the same was made in the name of assessee's son. It is also relevant to note that the Assessing Officer passed order dated 24th September, 2002 under section 154 of the Act and withdrew exemption under section 54F on the ground that the residential house was purchased in the name of son of the assessee. The assessee filed appeal before the CIT(A) against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... came final after the order of I.T.A.T. dated 08.08.2004. 5. The Hon'ble High Court of Andhra Pradesh in the case of Sirpur Paper Mills Limited vs. ITO, 114 ITR 404 (A.P.) wherein it has been held that Income Tax Department cannot be permitted to begin fresh litigations because of new views they entertain on facts or new versions which they present as to what should be the inference or proper inference either of the facts disclosed or the weight of the circumstances. 6. The Apex Court in the case of ITO vs. Nawab Mir Barkat Ali Khan Bahadur, 97 ITR 239 (SC) wherein it has been held that if second thoughts on the same material and omission to draw the correct legal presumption during the original assessment did not warrant initiation of pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the assessment leaving the question of assessment of income from that source/considered later. The Madras High Court held that assessment made by I.T.O. was piecemeal assessment and section 34 of the Act could not be called for in aid to complete the assessment which the I.T.O. has deliberately deferred. It is therefore clear that the I.T.O. must complete the assessment once and for all and he cannot defer assessment of any particular item of income to be done at later point of time. The assessment must be one single assessment and not piecemeal assessment. If the I.T.O. has assessed only the part of the income of sale income making the assessment and deferred the other part of income for consideration at later stage under section 147 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e A.O. opened second line of proceeding under section 147 on same material. Under the circumstances, it is not a case of escapement of income so that action under section 147 can be taken. 10. Even otherwise also, on the issue, whether reinvestment of sale consideration for availing benefit under section 54F should be in the name of the assessee is a debatable issue as there are decisions available on the both the sides. In the case of CIT vs. V. Natarajan, 287 ITR 271 (Mad.) wherein the property was purchased in the name of assessee's wife. In the case of CIT vs. Gurnam Singh, 327 ITR 278 (P&H) wherein the investment was made in assessee's son's name as co-owner. Allahabad High Court in the case of G.P. Agarwal vs. ACIT, 208 ITR 79 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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