ACIT, NCR BUILDING, JAIPUR vs. HANS RAJ AGARWAL, VIDHYADHAR NAGAR JAIPUR

Facts

The department's appeal challenges an order that set aside the assessment order. The assessee had filed cross-objections regarding the delay in filing. The original assessment was completed u/s 143(3) after detailed scrutiny of share transactions. However, the Assessing Officer later initiated reassessment proceedings u/s 147, alleging bogus long-term capital gains on shares of M/s Yamini Investment Company Ltd. The CIT(A) allowed the assessee's appeal, quashing the reassessment order.

Held

The Tribunal held that the reassessment proceedings initiated u/s 147 were not valid as they were based on a change of opinion and not on any new material. The original assessment had already considered all the facts and arrived at a conclusive view. Therefore, the reassessment order was set aside. The cross-objections filed by the assessee were allowed.

Key Issues

Whether reassessment proceedings initiated u/s 147 are valid when based on a change of opinion and not new material, and whether the original assessment was conclusive.