TMI Blog2022 (8) TMI 855X X X X Extracts X X X X X X X X Extracts X X X X ..... on sale of said property came for consideration before the AO. Details were called for by the AO during the course of assessment and an addition was made as LTCG on sale of the impugned property. Therefore, from the facts before us, it is evident that no new/fresh information or material came into the possession of the assessing officer necessitating him to initiate reassessment proceedings under section 147. All the information on the basis of which reassessment proceedings have been initiated by AO was within his knowledge at the time of passing of original assessment order. AO has initiated reassessment proceedings on reconsideration of the same facts which prevailed during the course of original assessment. No new facts/materials/information was discovered which led to the belief that income had escaped assessment, which was not in the knowledge of the assessing officer at the time of original assessment. Re-assessment proceedings were on a mere change of opinion and the AO is seeking a review of his earlier order vide the present reassessment proceedings. We are of the view that Ld. CIT(Appeals) has erred in facts and in law in confirming the additions made by the AO i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d cannot be relied for purposing of making addition. 3) In Presuming without admitting that any addition as Notional Rent Income is called for then it should be as per Municipal Bill estimating the Gross Annual Value of the flat and after deduction of common expenses, taxes etc. the net income be added. It is therefore submitted that relief claimed above be allowed and the order of the CIT(A) be modified accordingly. Your Appellant reserves right to add, alter, amend to withdraw any or all Grounds of Appeal. Tax effect Rs. 87,520/- 3. The brief facts of this case are that the assessee filed his return of income on 19-12-2011 declaring total income at Rs.3,74,708/-. Original assessment under section 143(3) of the Act was finalised on 24-03-2014 assessing the total income at Rs.94,26,058/- which includes agricultural income of Rs.86,500 /-. In appeal, Ld. CIT(Appeals) gave substantial relief to the assessee and pursuant to appeal effect order, the revised income was determined at Rs.4,04,166/- and agricultural income of Rs.86,500/-. Thereafter, the case of the assessee was re-opened under section 147 of the Act for the reason that on verification of records it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t can claim only one property as self occupied. Further, rental income from house property at different places at Vadodara has been shown in ITR. In other words, appellant is fully engaged in business activity at Vadodara. Therefore, living at Mumbai and remaining absent from business place for a stretch of 8 months is unbelievable. Hence, appellants theory that he was staying at Mumbai is quite spacious. 5.3 Needless to say, I.T. Act empowers AO to charge notional income from house property. When AO is empowered to do presume deemed income and the Act provides such mechanism then further evidence to tax the deemed rental income is not much needed. 5.4 Considering the facts above, AO has rightly taxed the deemed income for house property thereby arresting the escapement of revenue from tax net for 8 months during F.Y. 2010-11. Since, escapement of income is certain and the said income has not been disclosed in ITR hence reopening was valid in the eyes of law. Addition of Rs. 1,56,800/- under the head House Property is hereby upheld. All the grounds are disposed off accordingly. 4. The assessee is in appeal before us against the aforesaid order of the Ld. CIT(Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of the aforementioned property, which is in consideration before us. Accordingly, it is not a case where any new information has come in possession of the AO leading to the conclusion that there was escapement of income, so as to initiate reassessment proceedings. All information/details in connection with the aforementioned property, including non-receipt of rent from the above property were within the knowledge of the assessing officer at the time of original assessment. In the case of Income Tax Officer, Ward No.62 vs. Tech Span India (P.) Ltd. and another, (2018) 6 SCC 685 (Paras 14 to 18), Hon ble Supreme Court held that the assessing officer does not have power of review under section 147 of the Act. While passing the order the Supreme Court observed as under: 15. Section 147 of the IT Act does not allow the re-assessment of an income merely because of the fact that the assessing officer has a change of opinion with regard to the interpretation of law differently on the factsthat were well within his knowledge even at the time of assessment. Doing so would have the effect of giving the assessing officer the power of review and Section 147 confers the power to reass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2008-09 u/s 143(3) of the Act was also passed including the above rented income. For the subsequent assessment years namely AY 2009-10 and AY 2010-11, no rental income was declared by the assessee in the return of income and order was passed under section 143(1) of the Act and the Department had accepted the assessee s stand that there was no rental income earned by the assessee from the said property situated in Milton apartments. For the impugned assessment year AY 2011-12, no rental income was declared on the said property in the return of income, which was the same situation as was prevailing for the previous two years as well. During the impugned year, the property in question was sold by the assessee and the income from LTCG on sale of said property came for consideration before the AO. Details were called for by the AO during the course of assessment and an addition of Rs.89,35,392/- was made as LTCG on sale of the impugned property. Therefore, from the facts before us, it is evident that no new/fresh information or material came into the possession of the assessing officer necessitating him to initiate reassessment proceedings under section 147 of the Act. All the informat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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