TMI Blog2018 (3) TMI 1308X X X X Extracts X X X X X X X X Extracts X X X X ..... opy of the business purchase agreement, the A.O has not formed any opinion about the nature of the capital gain arising therefrom and therefore, it cannot be a case of change of opinion. Therefore, we do not find any reason to interfere with the order of the CIT(A) on this issue and the cross objection of the assessee is rejected. On reopening of the assessment the entire issue was before the A.O and the assessee had made the alternate claim of applicability of Sec. 50B of the IT Act to the transaction as a slump sale and in support of said claim has filed the Form No. 3CEA. The requirement to file Form No. 3CEA along with the return of income is to substantiate the claim u/s 50B of the Act. In the original return of income, since th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.03.2015 for the A.Y 2008-09 2. Brief facts of the case are that, the assessee company, engaged in the business of procurement, processing and export of seed, filed its return of income for the A.Y 2008- 09 on 29.09.2008 admitting a total income of ₹ 1,50,16,771/- and long term capital gains of ₹ 1,43,61,215/-. The assessment order u/s 143(3) of the IT Act was passed on 28.07.2010 by disallowing the claim of exemption u/s 10B of the IT Act and the total income was determined at ₹ 3,91,35,857/-. Subsequently, the A.O noticed that the long term capital gains offered by the assessee should have been taxed as short term capital gains, since he was of the opinion that the income chargeable to tax has the escaped assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment proceedings and also treating the long term capital gains offered by the assessee as short term capital gain. The assessee also raised the alternate claim that the transaction falls under the ambit of Sec. 50B of the IT Act and therefore should be considered as such. The CIT(A) rejected the grounds against the validity of the reassessment proceedings, but accepted the alternate plea of the assessee that the transaction is a slump sale and should be considered u/s 50B of the IT Act. Against the relief granted by the CIT(A), the revenue is in appeal before us and the assessee also is in cross objection against the order of the CIT(A) upholding the validity of the reassessment proceedings. 4. In its appeal, the Revenue has raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to the Ld. Counsel of the Assessee, since the relevant material was before the A.O and the A.O has not made any disallowance nor has discussed anything about the same in the assessment order, the A.O is deemed it to have considered the same in the assessment proceedings u/s 143(3) of the IT Act and therefore the reopening the assessment for considering the same as short term capital gains, is on mere change of opinion. He submitted that on mere change of opinion the reassessment is not valid. 8. On the other hand, the Ld. DR, supported the order of the CIT(A) who has held that the change of opinion would require the formation of opinion by the A.O on the issue in the proceedings u/s 143(3) of the IT Act, and since the issue of the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefrom and therefore, it cannot be a case of change of opinion. Therefore, we do not find any reason to interfere with the order of the CIT(A) on this issue and the cross objection of the assessee is rejected. 9. As regards the Revenue s appeal is concerned, we find that, on reopening of the assessment the entire issue was before the A.O and the assessee had made the alternate claim of applicability of Sec. 50B of the IT Act to the transaction as a slump sale and in support of said claim has filed the Form No. 3CEA. The requirement to file Form No. 3CEA along with the return of income is to substantiate the claim u/s 50B of the Act. In the original return of income, since the assessee has not made the claim, the assessee could not hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
