TMI Blog2022 (12) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment proceeding on the basis of which assessment order was passed u/s 143(3) of the Act. By change of opinion holding that reduction towards reversal on account of cancellation and price revision and deducting the same from the profit and loss account was irregular thereby having reason to believe that taxable income had escaped assessment, the concluded assessment could not have been reopened. At the stage of third round of appeal we do not find any substantial question of law for interference by the High Court under Section 260A - We are, therefore, of the view that there is no merit in this appeal. - Decide against revenue. - I.T.T.A. No. 326 of 2022 - - - Dated:- 13-12-2022 - THE HON BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, residential buildings, commercial complexes etc. For the assessment year 2010-11, it had filed return of income on 25.09.2010 admitting loss of Rs.29,24,79,084.00 after setting off long term capital gain of Rs.3,85,41,685.00. Subsequently respondent filed revised return of income on 27.09.2011 declaring higher loss of Rs.36,03,42,295.00 after setting off long term capital gain of Rs.3,85,41,685.00. Assessing officer passed the assessment order on 27.12.2012 under Section 143(3) of the Act accepting the loss returned on 25.09.2010. 5. Later on, case of the respondent was reopened under Section 147 of the Act by issuing notice under Section 148 dated 31.03.2016. Following the laid down procedure, assessing officer completed the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Less: Reversal of discount allowed Rs. 4,50,96,754/- Total revenue reversed on account of reversal Rs.40,76,45,071/- This proves that to this extent it was already recognized by adopting original value of contract as existing in the AY 2008-09 when the real estate market was in upward swing. Now, the price being revised during the pending of the project before final conclusion of the sale, the revised price needs to be adopted to arrive at relevant revenues recognition as applicable to relevant assessment years. Considering this fact the same amount as applicable for reversal on account of offering the same as income the same needs to be reversed to the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urning the advances to the extent possible so as to attract at least new customers for sale of remaining unsold/cancelled flats in the best interest of appellant reputation. In view of these facts, the appellant contentions on cancellations that advances received have been admitted in earlier years stands reconcilable and seems reasonable. The AO has not brought on record any adverse findings on this issue contrary to the claims of appellant during the original assessment or at least during the re-visited assessment which clearly proves that no specific findings countering the claims of the appellant were made by the AO. Hence, on the similar analysis of accounting as above as in the issue of price revision, the effect of cancellation needs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l on account of cancellation and price revision from the Profit and Loss Account for the year ended 31.03.2010 is irregular, the same need to be brought to tax. In view of the above, I have reason to believe that income has escaped assessment as per the provisions of section 147 of the IT Act. 5. There is hardly any dispute that we are in Assessment Year 2010-11 wherein the Assessing Officer had framed his section 143(3) regular assessment on 27.12.2012 followed by recording of the foregoing reasons culminating in issuance of section 148 notice dt.31.3.2016. This impugned reopening therefore has been initiated beyond the specified period of four years from the end of the relevant assessment year in light of section 147(1) 1st provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 014) 268 ITR 332 (Bom) , Tribunal held that assessing officer s reopening reasons have to be read on a standalone basis, without any scope for further improvement at a later stage by addition or deletion or substitution. Therefore, Tribunal held that CIT(A) was justified in taking the view that reopening of assessment was on account of mere change of opinion. 9. We are in agreement with the views expressed by the Tribunal. 10. The fact that the reopening of assessment was ordered on mere change of opinion has been upheld by two lower appellate authorities. It is evident that respondent had disclosed fully and truly all material facts to the assessing officer during the assessment proceeding on the basis of which assessment order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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