TMI Blog2018 (9) TMI 1865X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, it is a clear case of change of opinion on the same material which was before the AO at the time of original assessment proceedings. No hesitation to hold that the AO did not assume valid jurisdiction to initiate reassessment proceedings and to issue notice u/s. 148 as there was no new tangible material with the AO at the time of initiating said proceedings. Therefore hold that the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Income Tax (Appeals), Valsad ( CIT(A) for short) dated 14.11.2014 for the Assessment Year (A.Y) 2007-08. 2. The grounds of appeal raised by the Assessee read as follows: 1. Lr. CIT(A) Valsad has erred in law and on facts to uphold reopening of assessment made by the A.O; u/s. 147 of the Act. 2. Lr. CIT(A) Valsad has erred in law and on facts to sustain addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esentative (DR) submitted that the assessee had paid ₹ 9,60,000/- in cash to Shri Suresh C. Desai for purchase of land and this amount of an expenditure was required to be disallowed u/s. 40A(3) of the Act. The ld. DR also submitted that failure to do so resulted into short levy of tax of ₹ 4,29,770/- therefore, AO was right in initiating the reassessment proceedings. 5. On c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in cash to Shri Suresh C. Desai, which required to be disallowed u/s. 40A(3) of the Act. Thereafter, in last para, the AO jumped to form a reason to believe that the income has escaped assessment therefore, notice u/s. 148 of the Act being issued within the meaning of s. 147 of the Act. 6. Above noted analysis of reasons recorded clearly shows that there was no new tangible material in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed and we hold so. Accordingly, legal Ground No.1 of the assessee is allowed and consequently, initiation of reassessment proceeding u/s. 147 of the Act and notice u/s. 148 of the Act along with all subsequent proceedings and orders are quashed. 7. Since, by the earlier part of this order, I have quashed initiation of reassessment and all subsequent proceedings orders therefore, groun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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