Facts of the Case: The facts of the case are that the assessee is a public limited company which declared long term capital gain at Rs. 1,30,64,224/- as against the market value as per Registering Authority at Rs. 1,91,19,000/-. The AO reopened the assessment and computed the capital gain by adopting the registration value of the property and made an addition of Rs. 56,58,180/-. The Ld. CIT(A) quashed the order of the Assessing Officer u/s.147 of the Act as bad in law by observing that the re-assessment was made only on change of opinion and no tangible material was available with the Assessing Officer to reopen the assessment.
Contention of the Revenue: According to the Revenue, section 50 C was not applied by the AO while computing capital gains and therefore, reopening is essential.
Contention of the Assessee: The ld. Counsel for the Assessee relied on the orders of ld. CIT(A).
Held by ITAT: The Hon’ble Tribunal discussed the factual part of the case and observed that the sale deed was available with the AO at the time of completion of the Assessment proceedings. The AO has while calculating capital gains have not considered the provisions of section 50C. It was observed that there was no tangible evidence available with the AO to invoke section 147 after 4 years. Also, it was observed by the Tribunal that the AO does not have the power to review but to re-assess. Further, it was observed that there was no failure on the part of the assessee to make a return u/s 139 or to make a response u/s 142(1) or u/s 148.
Finally, it was concluded that there proceedings u/s 148 was bad in law.
Accordingly, the appeals of the Revenue was dismissed.
