Rahul Bajpai Vs ACIT (ITAT Raipur)
ITAT Raipur held that reassessment proceedings under section 147 of the Income Tax Act without any fresh material, amounts to mere change of opinion, and hence the same is not sustainable in law.
Facts- A.O based on information that while for the assessee had purchased a land situated at Talapara, Bilaspur vide a registered sale deed for a consideration of Rs.4,11,000/-, but the Fair Market Value (FMV) of the said property that was adopted by the stamp valuation authority was Rs.3.75 crore, thus, holding a conviction that the difference in the aforesaid value being the income of the assessee chargeable to tax u/s. 56(2)(vii)(b) of the Act had escaped assessment, initiated proceedings u/s. 147 of the Act. Notice u/s. 148 of the Act, dated 06.06.2018 was issued by the A.O.
A.O brought the difference in the FMV (stamp duty value) vis-à-vis the actual purchase value of Rs.3,70,89,000/- to tax by treating the same as the income of the assessee u/s. 56(2)(vii)(b) of the Act and determined his income at Rs.4,08,95,600/-.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that as the concluded assessment of the present assessee that was originally framed by the A.O vide his order passed u/s. 143(3) of the Act, dated 23.08.2016 had been reopened by successor A.O based on the same set of facts as were there before his predecessor and were looked into and deliberated upon by him in the course of the original assessment proceedings, and not on the basis of any fresh material coming to his notice after framing of the original assessment, therefore, the same is based on a mere “change of opinion”, which as pointed out by the AR and, rightly so, as per the ratio of the judgment of the Hon’ble Apex Court in CIT Vs. Kelvinator of India (2010) 320 ITR 561 (SC) is not permissible, thus, cannot be sustained and is liable to be quashed.
