TMI Blog2014 (6) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Company under the head ‘capital gain’, and gave benefit u/s 54EC in the original assessment - CIT(A) was justified in holding that the reopening of the assessment, based on the audit objection, is neither legal nor valid, and consequently, cancelling the same - Decided against - ITA No. 1362/Hyd/13 - - - Dated:- 29-5-2014 - Shri Chandra Poojari And Smt. Asha Vijayaraghavan,JJ. For the Appellant : Shri Solgy Jose Kottaram DR For the Respondent : Shri A. V. Raghuram ORDER Per Smt. Asha Vijayaraghavan, Judicial Member: This appeal by the Revenue is directed against the order of the Commissioner of Income-tax(Appeals) II, Hyderabad dated 10.07.2013 for the assessment year 2006-07. 2. Effective grievanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. We also find that the assessee has furnished material agreement to sell, cancellation agreement during the original assessment proceedings. Vide original assessment order dated 18.12.2008, income returned by the assessee has between accepted. 5. On 22.1.2010, the Receipt Audit Officer raised an objection stating that the amount of Rs.20 lakhs received from M/s. Balaji Construction Company should be brought to tax under the head income from other sources for the following reasons- 1. Such income is in the nature of windfall gain falling under the head income from other sources . 2. This amount is received in breach of contract; 3. There is no transfer of any asset, hence there is no question of claiming exemption under S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 ITR 561), mere change of opinion cannot be a reason to reopen the assessment. Further, the Hon ble Guajarat High Court in the case of Adani Exports V/s. DCIT (240 ITR 224), held that action under S.147 must depend directly and solely on the formation of the belief by the Assessing Officer on its own, (even where such information is passed on to it by audit). Further, it is evident that Dr.Shailaja received Rs.20 lakhs for relinquishment of a right in the property. Under S.2(47) of the Act, transfer in relation to capital asset includes (1) sale, exchange, or relinquishment of the asset, (2) the extinguishment of any right therein. Hence, in the present case, the Assessing Officer has rightly taken the consideration of Rs.20 lakhs rece ..... X X X X Extracts X X X X X X X X Extracts X X X X
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