HC Quashes Section 147 Assessment as reason for reopening was not sustainable

Giraben Atulbhai Shah Vs ACIT (Gujarat High Court)

The objections raised by the assessee came to be disposed of by the Assessing Officer vide his order dated 16^th November 2021 stating that the assessee sold immovable property for an aggregate value of Rs.52 Lakh and the same was not offered for tax in the return of income.

We find merit in the contention raised by Mr. Dave that the reasons assigned by the Assessing Officer for reopening of the assessment for the relevant year are factually incorrect. This is apparent from page : 35 of the paper book, which is a part of the return of income filed by the writ applicant. In column No.8 of the same, we find reference of Rs.52 Lakh towards full value of consideration. Although Mr. Bhatt tried to say something as regards the cost of acquisition with indexation, yet we are of the view that factually there is no foundation for the Revenue to reopen the assessment on the ground as alleged in the reasons assigned to the writ applicant – assessee.

FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT

1 By this writ application under Article 226 of the Constitution of India – an assessee has prayed for the following reliefs:

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