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TMI Blog2014 (10) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year 2006-2007 was sought to be reopened. The reasons accompanied a letter dated 25th November, 2013 of the department. The reasons advanced were as follows:- "Information has been received from Director of Income Tax (I & CI), Chennai that the assessee company has received compensation and enhanced compensation from the Govt. of Tamil Nadu for acquisition of land for widening of the existing MTH Road, measuring 96.89 sqm [ as per the sale deed page 5] during the F.Y. 2005-06 which is liable to capital gain for A.Y. 2006-07. The assessee has computed indexed cost of acquisition (as per 2nd provision to sec.48) on 01/04/1981 at Rs. 2,61,86,482.70. According to the computation of ITO-II, (I & CI), Chennai-34 the cost of acquisition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... More curiously the notice under Section 148 of the Income Tax was also dated 5th February, 2013 is annexure P-2 at page 26 of the petition. A specific declaration in the notice that it was being issued after obtaining the necessary satisfaction of the Commissioner and Chief Commissioner of Income Tax was scored out. Mr. Bajoria submitted that there was every reason to believe that no permission of the Commissioner of Income Tax or the Chief Commissioner was obtained before issuing the notice. I agree with the submissions of learned counsel that in the absence of reasons on 30th January, 2013, the Commissioner could not have recorded satisfaction under Section 151 of the said Act. The next point of challenge were the reasons itself. The dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e above decisions. Furthermore, what is more important is that the assessment was sought to be reopened on a mere change of opinion, the change of opinion being with regard to estimation of the indexed cost of acquisition on 1st April, 1981. It has been declared in the formal reasons that the justification for reassessment was to be found the view of the Income Tax Officer Chennai. On the face of the records the department was acting on a change of opinion. It is settled law that an assessment can not be reopened on a change of opinion. For all those reasons this writ application succeeds. I allow the same by passing orders in terms of prayers (a) and (b) of the writ petition. Certified photocopy of this Judgment and order, if applied fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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