Kamaluddin Hamed Salmani Vs DCIT (ITAT Hyderabad)
Reassessment Void When Issue Already Examined in Original Scrutiny- No Fresh Material- Change of Opinion on 54F Claim Not Permitted- ITAT Quashes ₹1.63 Cr LTCG Addition Under 54F Reopening
Assessee’s reassessment u/s 147 was initiated on the ground that capital gains exemption u/s 54F was wrongly claimed on sale of land, as the new property was allegedly received in loan settlement & not purchased from sale proceeds. The AO treated ₹1.63 crore as taxable LTCG, & the CIT(A) confirmed it.
Assessee contended that the issue of 54F exemption had already been examined during original scrutiny u/s 143(3) & that the reopening was based solely on the same material, constituting a mere change of opinion.
Tribunal noted that the original assessment specifically dealt with the 54F claim, all relevant documents were verified, & no new tangible material had emerged. Referring to Kelvinator of India Ltd. (SC), the ITAT held that reopening on the same set of facts amounts to review, not reassessment.
Reassessment quashed as invalid; addition of ₹1.63 crore deleted.
Appeal allowed in full.
Essence- Reopening on identical facts without fresh material is mere change of opinion — invalid under law.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
