TMI Blog2018 (2) TMI 1536X X X X Extracts X X X X X X X X Extracts X X X X ..... current year. Since the purchaser is not an agriculturist, he had made an agreement and the sale deed would be executed after conversion of the land into non-agricultural use. It was only after such examination of the sale of the land and related issues, the Assessing Officer passed the order of assessment making no disallowance. Entire issue was thus minutely examined by him. On this count, Assessing Officer cannot be allowed to reopen the assessment - the reasons lack validity and there was a degree of lack of application of mind on the part of the Assessing Officer when he conveyed that the cost of improvement of ₹ 5.09 lakhs was not reflected in the assessee's books of accounts. - Decided in favour of assessee. - Special ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment have been completed and income was determined at ₹ 1,22,08,700/vide order dated 19.01.2015. Scrutiny of computation of income and submission dated 15.12.14 revealed that the assessee has earned LTCG amounting to ₹ 1,84,12,333/after claiming deduction of ₹ 26,63,737/as cost of improvement on Hathijan Land. For claiming improvement cost, the assessee has furnished copy of personal balance sheet of FY 201011 depicting cost of improvement of ₹ 5,09,000/on this Hathijan Land. It was noticed from the audited balance sheet furnished by the assessee for FY 201011 that though the cost of Hathijan land was mentioned, there was noting in balance sheet to indicate that assessee has incurred any expenditure on this la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel Mrs.Mauna Bhatt for the department opposed the petition contending that the Assessing Officer had recorded proper reasons before issuing the notice. The cost of improvement of ₹ 5.09 lakhs was not reflected in the accounts of the assessee. The notice has been issued within a period of four years. 8. Having heard learned advocates for the parties and having perused the documents on record, we notice that during the original assessment, the Assessing Officer had raised multiple queries. One of them, as is apparent from the petitioner's response to the Assessing Officer dated 15.12.2014, pertained to the sale of the property in question. We may recall, the petitioner had sold agricultural land situated at village:Hathijan d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eet. 9. It was only after such examination of the sale of the land and related issues, the Assessing Officer passed the order of assessment making no disallowance. Entire issue was thus minutely examined by him. On this count, Assessing Officer cannot be allowed to reopen the assessment. 10. Even otherwise, we find the reasons lack validity and there was a degree of lack of application of mind on the part of the Assessing Officer when he conveyed that the cost of improvement of ₹ 5.09 lakhs was not reflected in the assessee's books of accounts. The assessee's books as well as the return filed, duly reflected the sum of ₹ 5.09 lakhs expended way back in the year 198788, on the basis of which, the assessee claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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