TMI Blog2023 (12) TMI 650X X X X Extracts X X X X X X X X Extracts X X X X ..... r came to be passed assessing Petitioner s income at Rs. 82,07,933/- against disclosed income at Rs. 81,23,993/-. The entire basis for reason to believe is accessed from Petitioner s record and there is nothing to indicate that there was any failure on the part of Petitioner to disclose fully and truly all material facts necessary for his assessment. Assessing Officer has made bald allegations that even though the assessee has produced books of account, profit and loss account balance sheet and other evidence, no requisite material facts, as noted in the reasons for reopening, were embedded in such a manner that material evidence could not be discovered. In our view, this has been made only to get over the fetters as held in Calcutta Dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 961 (the said Act) and the Order dated 20.11.2019 disposing Petitioner s objections to the reopening of assessment. Petitioner was Managing Director of a Company and earned income from salary, income from house property and income from other sources. For the assessment year 2012-13, Petitioner has filed income tax return on 27.07.2012 disclosing the total income of Rs. 81,23,933. The assessment was completed under section 143(3) of the said Act. In the assessment order dated 31.12.2014, the income was assessed at Rs. 82,07,933/-. 3. Petitioner received impugned notice dated 26.03.2019 under section 148 of the said Act informing Petitioner that there were reasons to believe Petitioner s income chargeable to tax for the assessment year 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment records of the assessee were accessed and were used to enquire about the nature of the transaction in respect of both the properties. From the assessment records it was seen that the assessee has claimed deduction by stating that the property was under-construction hence the time limit of buying the same not before one year of the date on which capital gains arose does not apply. However, the property mentioned to be under construction was purchased on 28.05.2010. As the property was purchased and not constructed therefore the time limit of not buying before one year of the date of capital gains. Therefore, I am of the firm opinion and have bona fide and valid reason to believe that the case is squarely fit to be reopened wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subject matter of the reopening and Petitioner had, by letter dated 31.10.2014, responded to the query and also provided the working note on computation of long term capital gain on sale of flat and exemption claimed under section 54 of the said Act along with copy of agreement of sale of flat. Copy of the reply along with working note has been annexed to the Petition. Consequently, an assessment order dated 31.12.2014 was passed. Of course, assessment order does not disclose anything about the said flat but the law on that is quite clear. 6. In the affidavit in reply, Revenue basically reiterated what is stated in the reasons to believe and denied that it was a case of change of opinion. Revenue stated that in the return of income vario ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilure on the part of Petitioner to disclose fully and truly all material facts necessary for his assessment. Assessing Officer has made bald allegations that even though the assessee has produced books of account, profit and loss account balance sheet and other evidence, no requisite material facts, as noted in the reasons for reopening, were embedded in such a manner that material evidence could not be discovered. In our view, this has been made only to get over the fetters as held in Calcutta Discount Co. Ltd. V. Income-Tax Officer [1961] 41 ITR 191 (SC). 9. Moreover undisputedly query was raised during the assessment proceedings and Petitioner has provided the details vide letter dated 31.10.2014 on capital gain of the sale of propert ..... X X X X Extracts X X X X X X X X Extracts X X X X
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