ACIT1(1), BHOPAL vs. SHRI HARVINDER SINGH, BHOPAL

Whether on the facts and circumstances of the case, the Ld. CIT(A) was justified in holding that the re-opening of assessment is nothing but change of opinion when there was clear misrepresentation of facts by the assessee during original assessment proceedings u/s 143(3) of the Act.”

The facts of the case are that assessee filed his return of income on 21.09.2013 declaring total income of Rs.9,54,940/-. Assessment under S.143(3) of the Act was completed on 27.01.2016 accepting the returned income. Subsequently, the case was reopened under S.147 of the Act after recording reasons. In the re-assessment, the investment was made by the assessee amounting to Rs.19,17,774/- in purchase of adjoining flats for being used as a single unit and sought exemption under S.54F of the Act which was disallowed by the learned AO and accordingly additions were made.

Thereafter, the assessee preferred first statutory appeal before the learned CIT(A) who allowed the appeal of the assessee.

The Revenue has preferred appeal before us against the order of the learned CIT(A).

We have gone through the relevant records and impugned order and heard both the parties. At the time of original assessment before the learned AO, all documents including issues of two flats and claim of the assessee under S.54B of the Act and partly under S.54F of the Act were before him. The learned AO discussed the issue with the assessee and during the original assessment proceedings he did not draw any adverse [ACIT vs. Shri Harvinder Singh] AY 2013-14 - 3 - opinion on the issue of claim of exemption made by the assessee. During assessment proceedings, each and every claim of the assessee was accepted including under S. 54B and partly 54F of the Act. In our considered view, when matter has already been examined by the AO during original assessment proceedings on the same issue cannot be re-opened by the department. It is well settled principle held by the Hon’ble Supreme Court that non-rejection of explanation in the assessment order would amount to AO accepting the view of the assessee, thus taking a view/forming an opinion. In our considered opinion, learned CIT(A) has passed a detailed and reasoned order and same does not require any kind of interference at our end.

In the result, the appeal filed by the Revenue is dismissed.